Given Supply changed from S1 to S2, whaich of the following statements are TRUE? This is a decrease in supply. This represents an increase in supply. A possible reason for this change is an increase in demand. A possible reason for this change is a decrease in demand. A possible reason for this change is a decrease in resource prices. A possible reason for this change is an increase in resource prices. A possible reason for this change is better production technology. A possible reason for this change is change in consumer tastes. A possible reason for this change is increasing number of sellers. A possible reason for this change is decreasing number of sellers. A possible reason for this change is a lower price of a complement in production.
Given Supply changed from S1 to S2, whaich of the following statements are TRUE?
|
This is a decrease in supply. |
||
|
This represents an increase in supply. |
||
|
A possible reason for this change is an increase in |
||
|
A possible reason for this change is a decrease in demand. |
||
|
A possible reason for this change is a decrease in resource prices. |
||
|
A possible reason for this change is an increase in resource prices. |
||
|
A possible reason for this change is better production technology. |
||
|
A possible reason for this change is change in consumer tastes. |
||
|
A possible reason for this change is increasing number of sellers. |
||
|
A possible reason for this change is decreasing number of sellers. |
||
|
A possible reason for this change is a lower |
Supply refers to the willingness of a seller to supply goods and services at a given price. On the other hand, demand refers to the willingness to buy goods and services at a given price. If supply is greater than demand, prices will fall, and if demand is greater than supply, prices will rise. Thus, supply and demand both determine the equilibrium price and quantity in the market.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
