ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Falling transportation costs made them cheaper to supply.
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Improved technology made them cheaper to produce.
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Higher taxes made them more expensive for consumers.
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Increased inventories made them more expensive for sellers.
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Detailed explanation-1: -What caused the supply curve for digital cameras to keep moving to the right during the early 2000s? Falling transportation costs made them cheaper to supply.
Detailed explanation-2: -Early digital cameras combined high prices with low-quality. Predict Consequences What do you think will happen to the supply curve for digital cameras as technology improves? As digital cameras became cheaper and easier to produce, the supply increased.
Detailed explanation-3: -The law of supply states that there is a direct relationship between price and quantity supplied. In other words, when the price increases the quantity supplied also increases. This is represented by an upward sloping line from left to right.
Detailed explanation-4: -Change in Supply Graph When the supply curve shifts to the right, it signals an increase in supply, which results in a lower equilibrium price.
Detailed explanation-5: -A change in the determinants will shift the supply curve. Change in supply refers to a shift in the supply curve due to the influence of the supply shifters, whereas a change in quantity supplied is the movement along the supply curve due to a change in the price of the good, keeping other factors constant.