ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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prices of resources used in production
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expected future prices
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the number of sellers
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the price of the good itself
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Detailed explanation-1: -Answer and Explanation: The correct answer is (C) the price of the good itself.
Detailed explanation-2: -Along the supply curve, the number of sellers is held constant. If a new firm were to enter the market, the number of sellers (and thus the supply) would also increase.
Detailed explanation-3: -All the factors except a change in market price contribute to a shift in the supply curve. Change in price corresponds to the movement along the supply curve.
Detailed explanation-4: -To keeps the demand curve constant, the money income and the prices of other goods are kept constant because a change in the real income of a buyer will tend to increase purchasing power which will shift the demand curve, and a decrease in the price of a particular good will loosen the spending to buy other goods.
Detailed explanation-5: -Assumptions to the law of supply: cost of all factors of production remains constant.