ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the demand for bobble-heads will decrease.
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the supply curve will shift to the right.
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the supply curve will shift to the left.
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the demand for bobble-heads will equal the supply.
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Detailed explanation-1: -What will happen if the government decided to subsidize the production of bobble-head dolls? the demand for bobble-heads will decrease.
Detailed explanation-2: -An increase in the number of sellers supplying a good or service shifts the supply curve to the right; a reduction in the number of sellers shifts the supply curve to the left.
Detailed explanation-3: -An increase in the cost of raw materials makes production costly and thus, the supply curve shifts to the left.
Detailed explanation-4: -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.