Some Producers Are Chatting Over a Beer

question 72

Multiple Choice

Some producers are chatting over a beer. Which one of the following quotations refers to a leftward shift of the supply curve?

• A)"Wage increases have forced us to raise our prices."
• B)"Our new, sophisticated equipment will enable us to undercut our competitors."
• C)"Raw material prices have sky-rocketed; we will have to pass the cost on to our customers."
• D)"We anticipate a big increase in demand. Our product price should rise, so we are planning for an increase in output."
• E)Both A and C

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Definitions:

Boiling Point

The temperature at which a substance changes from a liquid to a gas.

Alkanes

Hydrocarbons consisting entirely of single-bonded carbon and hydrogen atoms and are the simplest form of hydrocarbons.

Dimethylpropyl

A hydrocarbon group or moiety consisting of a propyl backbone with two methyl substituents.

Ethyl

An organic functional group or radical derived from ethane, containing two carbon atoms.