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Movement along versus shift of demand and supply curves. Consider the supply of

ID: 1191069 • Letter: M

Question

Movement along versus shift of demand and supply curves.

Consider the supply of peanut butter.

Which of the following would cause a movement along the supply curve Ithat it is a change in the quanitity supplied) for peanut butter? Check all that apply.

1. A change in the price of peanut butter

2. A change in the price of peanuts (used idn the production of peanut butter.

3. A change in the number of products

Which of the following would cause a shift of the supply curve for peanut butter? Check all that apply

1. A change in the price of peanut butter

2. A change in expectations about the future price of peanut butter

3. A change in the price of peanuts (used in the production of peanut butter.

Explanation / Answer

1. Ans: A change in the price of peanut butter.

2. Ans: A change in expectations about the future price of peanut butter.

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