Examlex

Solved

Figure: Supply Shift in the Figure, the Supply Curve

question 198

Multiple Choice

Figure: Supply Shift Figure: Supply Shift   In the figure, the supply curve shifted from S<sub>0</sub> to S<sub>1</sub>. To describe this movement, we would say that: A)  demand decreased, which caused a decrease in supply. B)  supply decreased, which caused a decrease in quantity demanded. C)  supply decreased, which caused a decrease in demand. D)  supply increased, which caused a decrease in quantity demanded. In the figure, the supply curve shifted from S0 to S1. To describe this movement, we would say that:


Definitions:

Opportunity Cost

The cost attributed to the refusal of the immediately lesser appealing option during decision-making.

Target Rate

A target interest rate set by the central bank in a country that guides monetary policy decisions, aiming to control inflation, encourage borrowing, or stabilize the economy.

Inflation

A measure of the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Money Supply

A comprehensive sum of money in an economy at any given point, covering cash, coins, and the funds maintained in demand and savings deposits.

Related Questions