ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an increase in the good’s selling price
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a change in demand
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a decrease in the good’s selling price
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a change in something other than the good’s price
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Detailed explanation-1: -Supply curve shift: Changes in production cost and related factors can cause an entire supply curve to shift right or left. This causes a higher or lower quantity to be supplied at a given price. The ceteris paribus assumption: Supply curves relate prices and quantities supplied assuming no other factors change.
Detailed explanation-2: -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.
Detailed explanation-3: -Movement along the Supply Curve When the price of a commodity changes, other factors kept constant, the quantity supplied of a commodity changes suitably. This is because of the direct relationship between the two. This is known as a change in quantity supplied. Graphically it causes movement along the supply curve.