ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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By increasing computer production
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By decreasing computer production
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By halting computer production
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By keeping computer production steady
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Detailed explanation-1: -Any change in the cost of an input used to produce a good-such as raw materials, machinery, or labor-will affect supply. A rise in the cost of an input will cause a fall in supply at all price levels because the good has become more expensive to produce.
Detailed explanation-2: -Elasticity of supply is a measure of the way quantity supplied reacts to a change in price.
Detailed explanation-3: -An increase in price almost always leads to an increase in the quantity supplied of that good or service, while a decrease in price will decrease the quantity supplied.
Detailed explanation-4: -Conversely, a variable cost is dependent on the production output level of goods and services. Unlike a fixed cost, a variable cost is always fluctuating. This cost rises as the production output level rises and decreases as the production output level decreases.