ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a situation in which quantity demanded exceeds quantity supplied
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an increase in the cost of the machinery used to produce X
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a decrease in the wages of workers employed to produce X
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a technological improvement in the production of X
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Detailed explanation-1: -Also, when technology deteriorates, the cost of producing goods rises, and the quantity produced decreases. This shifts the SC (supply curve) leftwards.
Detailed explanation-2: -An increase in the complement good’s price would increase the supply of X and shift the supply curve forward. A fall in prices of production factors reduces the cost to the firm and results in a forward shift in the supply curve.
Detailed explanation-3: -The answer is d. An improvement in the technology used in the production of good X, With the improvement in technology, the firm can produce more finished goods with the same number of inputs, which in turn will increase the supply for good X in the market.
Detailed explanation-4: -The supply curve shifts leftward when there is a decrease in the quantity supplied at every price.
Detailed explanation-5: -Which of the following will shift the supply curve for good X leftward? A situation in which quantity demanded exceeds quantity supplied. An increase in the cost of machinery used to produce X.