ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A supply curve that has shifted to the right
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A supply curve that has shifted to the left
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A demand curve that has shifted to the right
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A demand curve that has shifted to the left.
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Detailed explanation-1: -If the price of a resource used to produce the product increases, this will increase the costs of production and the producer will no longer be willing to offer the same quantity at the same price. They will want a higher price to cover the higher costs. This shifts the supply curve to the left ( S).
Detailed explanation-2: -Aggregate-Supply Curve: a curve that shows the quantity of goods and services that firms choose to produce and sell at each price level.
Detailed explanation-3: -When the own price of a commodity falls, the quantity supplied will be reduced and hence, there will be a downward movement on the supply curve. The downward movement on the supply curve shows the contraction of supply.
Detailed explanation-4: -An increase in factor prices should decrease the quantity suppliers will offer at any price, shifting the supply curve to the left.