ECONOMICS (CBSE/UGC NET)

ECONOMICS

SUPPLY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of these events would indicate a movement along a supply curve for batteries
A
A new law requires battery manufacturers to spend more money on environmentally safe batteries
B
Workers at a major battery factory go on strike and stop production
C
Battery manufacturers raise the price of a package of AA batteries form 3.50 to 3.95
D
A new trade agreement enables stores to import foreign batteries
Explanation: 

Detailed explanation-1: -Answer and Explanation: A movement along the supply curve is when there is a change in the quantity supplied due to a change in the price of the commodity.

Detailed explanation-2: -A change in price causes a movement along the supply curve; such a movement is called a change in quantity supplied. As is the case with a change in quantity demanded, a change in quantity supplied does not shift the supply curve.

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: -Answer and Explanation: The correct answer is: A) A change in price. Movements along the supply curve are caused by changes in the price of the product.

There is 1 question to complete.