ECONOMICS
SUPPLY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
an increase in price
|
|
|
a change in price and availability
|
|
|
a decrease in price
|
|
|
a change in something other than price
|
Detailed explanation-1: -This is a change in price, which is caused by a shift in the supply curve. Similarly, a change in supply refers to a shift in the entire supply curve, which is caused by shifters such as taxes, production costs, and technology.
Detailed explanation-2: -A change in supply results from a change in a supply shifter and implies a shift of the supply curve to the right or left. A change in price produces a change in quantity supplied and induces a movement along the supply curve. A change in price does not shift the supply curve.
Detailed explanation-3: -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-4: -A rise or fall in the price of the commodity alone causes a movement along the supply curve (ceteris paribus).
Detailed explanation-5: -Change in Quantity Demanded-a movement along a fixed demand curve in response to a change in the price of that good, ceteris paribus (everything else unchanged).