ECONOMICS
SUPPLY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
an increase in the price of iphones
|
|
|
a decrease in the number of sellers of iphone
|
|
|
an increase in the price of plastic, an input into the production of iphones
|
|
|
an improvement in the technology used to produce iphones
|
Detailed explanation-1: -A change in price does not shift the supply curve.
Detailed explanation-2: -iPhones and iPhone cases are the complementary goods since iPhone cases can be used only with iPhones. Therefore, the rise in the price of iPhones reduces the demand of iPhones and eventually, iPhone cases. In other words, the demand curve of iPhone cases shifts to left due to the increase of iPhones price.
Detailed explanation-3: -A rightward shift of the supply curve means that there is more supply of a good. The only option that can provoke such an effect is the improvement of technology. New technology can help producers to produce at lower costs.
Detailed explanation-4: -Answer and Explanation: The correct answer is C) A rise in the price of X. Any change in the price of the good X would result in movement along the same curve.