Related Web Links – Module 6 - Supply and Demand: Supply and Equilibrium |
Considering factors that influence the supply
curve, labor costs account for about 2/3 of total production costs for the
typical
U.S.
firm. A closely watched economic indicator is the Employment Cost Index
published by the Bureau of Labor Statistics. Increases in the index indicate
higher production costs and potentially rising consumer prices if the firm
passes the cost increase onto the consumer;, as shown graphically by an inward
(leftward) shift of the firm’s supply curve. |
Go to: http://www.bls.gov/ncs/ect/ |
Go to: http://www.bls.gov/news.release/eci.toc.htm |
Commodities such as energy (oil, gas, and
electricity), steel, paperboard, and many others are important inputs in
production. Rising commodity prices can have the same effect on prices as
increasing labor costs. Bloomberg.com gives a general overview of changes in
commodity prices. |
Go to: http://www.bloomberg.com/markets/commodities/cfutures.html |
Bloomberg tracks energy prices. |
Go to: http://www.bloomberg.com/markets/commodities/energyprices.html |
CNN includes information on critical commodities
such as pork bellies! |
Go to: http://money.cnn.com/markets/commodities.html |
Changes in technology are measured by the effect on
worker productivity. Better technology is applied through capital equipment
used by workers. Better capital should lead to more productive workers, and the
Bureau of Labor Statistics tracks labor productivity. Look for the output per
hour statistic. |
Go to: http://www.bls.gov/lpc/home.htm |