ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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rightward shift of the supply curve.
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movement down along the supply curve
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movement up along the supply curve.
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leftward shift of the supply curve.
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Detailed explanation-1: -The supply curve will move upward from left to right, which expresses the law of supply: As the price of a given commodity increases, the quantity supplied increases (all else being equal). Note that this formulation implies that price is the independent variable, and quantity the dependent variable.
Detailed explanation-2: -An increase in supply shifts the supply curve rightward. 2. The price falls to restore market equilibrium.
Detailed explanation-3: -A rise or fall in the price of the commodity alone causes a movement along the supply curve (ceteris paribus).
Detailed explanation-4: -A change in quantity supplied is a movement along the supply curve in response to a change in price. A change in supply is a shift of the entire supply curve in response to something besides price.
Detailed explanation-5: -An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.