What Happens to the Supply Curve When Certain Inputs Used

question 34

Essay

What happens to the supply curve when certain inputs used to make the products are banned? For example,fluorocarbon gases used to be used in the manufacture of aerosol products,for example,hairspray,but were phased out by the Environmental Protection Agency in the late 1970s.

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Definitions:

Peak Driving

Peak driving refers to periods of high demand for gasoline, often coinciding with certain times of the year like summer holidays, resulting in higher gasoline prices due to increased consumption.

Pollution Rights

Tradable permits allowing the holder to emit a certain amount of pollution, used to control the level of pollutants by setting a market price for emissions.

Moral Hazard

A situation in finance and insurance where one party takes on excessive risk because they don't bear the full consequences of their actions.