A shift in supply curve indicates that a different quantity will be supplied at ...
QuestionA shift in supply curve indicates that a different quantity will be supplied at each possible price because?
The correct answer is C.
This Economics question is asking about what a shift in supply curve indicates. A supply curve is a graph that shows the relationship between the price of a product and the quantity of the product that producers are willing and able to sell. When there is a shift in the supply curve, it means that the quantity supplied at each possible price has changed.
The question is asking why this change in quantity supplied at each possible price occurs. The options are:
Option A: Consumers are willing to pay higher prices.
Option B: Supply is facing competition.
Option C: Other factors than price have changed. (Correct)
Option D: Price has changed.
The correct answer is Option C. A shift in the supply curve indicates that other factors than price have changed. This means that something other than the price of the product has caused a change in the quantity of the product that producers are willing and able to sell.
For example, if a new technology is introduced that makes it cheaper to produce the product, this would cause an increase in the quantity of the product that producers are willing and able to sell at each possible price. This would lead to a shift in the supply curve to the right, indicating an increase in supply.
To learn more about this, please read the relevant sections of the recommended textbooks.
If you see something wrong with the question or answer, please leave a comment and we'll take a look.
Don't fully understand why the selected answer is correct or need additional clarification? Try asking AI Tutor.
More Past Questions:
- English Language
- Christian Religious Knowledge
- Literature In English
- Agricultural Science
- General Paper
- Islamic Religious Knowledge
- Further Mathematics
- Computer Studies
- Civic Education
- Catering Craft Practice
- Data Processing
- Current Affairs
- Animal Husbandry
- Office Practice
- Fine Arts
- Home Economics