ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an increase in the price of the good
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a fall in the price of a substitute in production
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a decrease in the wages of labor used in production of the good
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a technological advance
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Detailed explanation-1: -A change in price does not shift the supply curve.
Detailed explanation-2: -Answer and Explanation: The correct answer is C) A rise in the price of X. Any change in the price of the good X would result in movement along the same curve.
Detailed explanation-3: -Solution. (b) Price of the good, i.e. price of a good does not leads to a shift in the supply curve of a good.
Detailed explanation-4: -Shifts in the supply and demand curves are only caused by changes other than price changes. Price changes only cause a movement along the demand or supply curve. This is because at higher price levels a consumer will simply demand less quantity, so we move along the demand curve to a lower level of quantity.
Detailed explanation-5: -What Factors Can Affect the Supply Curve? The supply curve can shift based on several factors including changes in production costs (e.g., raw materials and labor costs), technological progress, the level of competition and number of sellers/producers, and the regulatory & tax environment.