Breaking news reports claim that household incomes are strong and growing. Assum
ID: 1197908 • Letter: B
Question
Breaking news reports claim that household incomes are strong and growing. Assuming all other applicable indicators remain the same, how would you expect this to impact the position of the Demand Curve in the Product Market?
a.Right shift in the Demand Curve
b.Left shift in the Demand Curve
c.No Shift in the Demand Curve
Reports state that militant activity in the vicinity of the world’s largest mine that produces a critical input in the production of a popular product has made it impossible to procure the input and its price skyrockets in the Factor Market, assuming that all other applicable indicators remain the same, how would you expect this to impact the position of the Supply Curve for the popular product in the Product Market? would it be no shift in supply curve?
a.Right shift in the Supply Curve
b.Left shift in the Supply Curve
c.No Shift in the Supply Curve
You read an article that reports that less people are having children and the population as a whole is getting older on average. Assuming all other applicable indicators remain the same what would you expect to happen to the Demand Curve for diapers and the Demand Curve for adult diapers? my guess the c because less demand for diapers as less people having kids?
a.Neither curve would move.
b.Right Shift in the Demand Curve; Left shift in the Demand Curve.
C.Left shift in the Demand Curve; Right shift in the Demand Curve.
You read an article that discusses profound advances in the production of LED televisions, allowing companies to produce twice as many units and half the cost. Assuming that all other applicable indicators remain unchanged, what you expect to happen to the Supply Curve in the market for LED televisions? a, if less supply left as demand increasing?
a.Left shift in the Supply Curve
b.No Change
c.Right shift in the Supply Curve0
Explanation / Answer
1. Increase in income will incentivise people to increase their demand, thus there will be rightward shift in demand curve.
2. This will reduce the supply of the product in which this is used as input. Thus leftward shift in supply curve.
3. (c) Left shift in demand curve for diapers and right shift for demand curve for adult diapers
4.Right shift in supply curve for LED televisions as they can now produce more at less cost.
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