1. Determinants that can cause a movement along the supply curve include: a. cos
ID: 1157516 • Letter: 1
Question
1.
Determinants that can cause a movement along the supply curve include:
a. cost of a market basket
cost of inputs, technology/productivity, and taxes/subsidies
unemployment and inflation
change of price in the original product being supplied
2.
A situation in which the quantity supplied of a good is less than the quantity demanded of the good (Qd>Qs) is called a
shortage
surplus
equilibrium
consumer price index
3.
An increase in income if product is an normal good. Will cause a(an)...
Increase in Demand, causing a rightward (outward) shift of the demand curve.
Decrease in Demand, causing a leftward (inward) shift of the demand curve.
Increase in Supply, causing a rightward(outward) shift of the supply curve.
Decrease in Supply, causing a leftward(inward) shift of the supply curve.
4.
Determinants that can shift the supply curve include:
cost of a market basket
cost of inputs, technology/productivity, and taxes/subsidies
unemployment and inflation
favorable change in consumer tastes and preferences
5.
Determinants that cause a movement ALONG the demand curve include:
Price of the original product
Income, tastes/preferences, and prices of other goods
Supply and demand equilibrium
Market basket value
a. cost of a market basket
b.cost of inputs, technology/productivity, and taxes/subsidies
c.unemployment and inflation
d.change of price in the original product being supplied
Explanation / Answer
1)The answer is option (b)
Explain:- cost of input, technology , taxes or subsidy can change the shift of the supply curve, an increase in input prices will shift the supply curve to the left and vice versa. A development in technology can shift the curve to the right. Subsidy can shift the curve to the right, whereas taxes will shift it to the left.
2) The answer is option (b)
Explain:- If quantity supplied is more than the quantity demanded then there is a surplus in the market. That is the product is in more amount then it is required in the market.
3) The answer is option (a)
Explain:- Increase in income , means the amount of money to be spent on buying commodities has increased. If the good is a normal good, by the theory of income effect, it will increase the demand, and shift it to the right.
4) The answer is option(b)
Explain:- cost of input, technology , taxes or subsidy can change the shift of the supply curve, an increase in input prices will shift the supply curve to the left and vice versa. A development in technology can shift the curve to the right. Subsidy can shift the curve to the right, whereas taxes will shift it to the left.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.