{"id":259224,"date":"2026-07-13T16:50:46","date_gmt":"2026-07-13T13:50:46","guid":{"rendered":"https:\/\/1kitap1.com\/en\/economics-7th-edition-n-gregory-mankiw-mark-p-taylor-1\/"},"modified":"2026-07-13T16:50:46","modified_gmt":"2026-07-13T13:50:46","slug":"economics-7th-edition-n-gregory-mankiw-mark-p-taylor-1","status":"publish","type":"post","link":"https:\/\/1kitap1.com\/en\/economics-7th-edition-n-gregory-mankiw-mark-p-taylor-1\/","title":{"rendered":"Economics 7th Edition – N Gregory Mankiw Mark P Taylor (1)"},"content":{"rendered":"
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The marginal product of any factor, in turn, depends on the quantity of that factor that is available. Because of diminishing marginal product, a factor in abundant supply has a low marginal product and thus a low price, and a factor in scarce supply has a high marginal product and a high price. As a result, when the supply of a factor falls, its equilibrium factor price rises.<\/p>\n

When the supply of any factor changes, however, the effects are not limited to the market for that factor. In most situations, factors of production are used together in a way that makes the productivity of each factor dependent on the quantities of the other factors available to be used in the production process. As a result, a change in the supply of any one factor alters the earnings of all the factors.<\/p>\n

For example, suppose one night, lightning strikes the storehouse in which are kept the wooden ladders that the apple pickers use to pick apples from the orchards, and many of the ladders are destroyed in the ensuing fire. What happens to the earnings of the various factors of production? Most obviously, the supply of ladders falls and, therefore, the equilibrium rental price of ladders rises.<\/p>\n

Those owners who were lucky enough to avoid damage to their ladders now earn a higher return when they rent out their ladders to the firms that produce apples. Yet the effects of this event do not stop at the ladder market. Because there are fewer ladders with which to work, the workers who pick apples have a smaller marginal product. Thus, the reduction in the supply of ladders reduces the demand for the labour of apple pickers, and this causes the equilibrium wage to fall. This story shows a general lesson in that an event that changes the supply of any factor of production can alter the earnings of all the factors.<\/p>\n

The change in earnings of any factor can be found by analyzing the impact of the event on the value of the marginal product of that factor. What Is Capital Income? Labour income is a relatively easy concept to understand: it is the wages and salaries that workers get from their employers. The income earned by capital, however, is less obvious.<\/p>\n

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This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com\/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest.<\/p>\n

Important Notice: Media content referenced within the product description or the product text may not be available in the eBook version. OceanofPDF.com Economics, Seventh Edition US author: N. Gregory Mankiw Adapting Authors: Mark P. Taylor, with contributor Andrew Ashwin Publisher: Annabel Ainscow List Manager: Birgit Gruber Editorial Assistant: Kim Dodgshon Marketing Manager: Louise Corless Manager, GCPM: Jyotsna Ojha Manufacturing Manager: Eyvett Davis Typesetter: MPS Limited Cover design: Cyan Design Cover Image: \u00a9 Olivier Guiberteau\/Shutterstock \u00a9 2026, Cengage Learning EMEA WCN: 02-300-527 Adapted from Principles of Economics, 10th Edition, by N.<\/p>\n

Gregory Mankiw. Copyright \u00a9 Cengage Learning, Inc., 2024. All Rights Reserved. ALL RIGHTS RESERVED. No part of this work may be reproduced, transmitted, stored, distributed or used in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Cengage Learning or under licence in the U.K. from the Copyright Licensing Agency Ltd. The Author and the Adapting Authors have asserted the right under the Copyright Designs and Patents Act 1988 to be identified as Author and Adapting Authors of this Work.<\/p>\n

For product information and technology assistance, contact us at emea.info@cengage.com For permission to use material from this text or product and for permission queries, email emea.permissions@cengage.com British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. ISBN: 978-1-8050-3049-2 Cengage Learning, EMEA Cheriton House, North Way Andover, Hampshire, SP10 5BE United Kingdom Cengage Learning is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world.<\/p>\n

Find your local representative at cengage.uk To learn more about Cengage platforms and services, register or access your online learning solution, or purchase materials for your course, visit cengage.uk Printed in the United Kingdom by CPI Antony Rowe Print Number: 01 Print Year: 2026 OceanofPDF.com BRIEF CONTENTS About the Authors x Preface xi Acknowledgements xiv PART 1 Introduction to Economics 1 1 What Is Economics?<\/p>\n<\/blockquote>\n

This is a short excerpt from the opening of “” by Unknown, quoted for review and introduction purposes. All rights belong to the copyright holders.<\/em><\/p>\n

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