Which of the Following Events Would Cause a Movement Downward

question 3

Multiple Choice

Which of the following events would cause a movement downward and to the left along the supply curve for mangos?

• A)The number of sellers of mangos decreases.
• B)There is an advance in technology that reduces the cost of producing mangos.
• C)The price of mangos falls.
• D)The price of fertilizer increases,and fertilizer is an input in the production of mangos.

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Definitions:

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, often used as a measure of inflation.

Expected Price Level

The anticipated average level of prices in the economy for goods and services, as predicted by consumers and businesses.

Actual Price Level

The current market price of goods and services, reflecting the buying power of money at a given time.

Nominal Wage

The amount of money paid to an employee before any deductions and adjustments for inflation.