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