Which Event Will NOT Cause the Supply Curve for Kayaks

question 247

Multiple Choice

Which event will NOT cause the supply curve for kayaks to shift to the left?

• A) an increase in the costs of materials to build a kayak
• B) a decrease in the number of sellers of kayaks
• C) a decrease in the price of a kayak
• D) an increase in the taxes on kayaks

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Definitions:

Fixed Overhead

Costs that do not change with the level of production or sales, including expenses such as rent, salaries, and insurance, which are incurred regardless of business activity levels.

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs, indicating the portion contributing to fixed costs and profit.

Selling Price

The amount a customer pays to purchase a product or service from a business.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, due to fixed costs in a company's structure.