The Supply Curve for a Good Will Shift to the Right

question 22

Multiple Choice

The supply curve for a good will shift to the right if:

• A) some ?rms in the market close down and exit the market.
• B) the costs of labour used in producing the good increase.
• C) the costs of capital used in producing the good increase.
• D) a cost-reducing technology is introduced in production.

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Definitions:

Yielding

The income produced by an investment, typically expressed as a percentage of the investment's cost.

Canada Bonds

Bonds issued by the Canadian government, offering a low-risk investment option with fixed interest payments.

Floating Rate Bond

A bond with an interest rate that is tied to a benchmark, such as LIBOR, and can change over time.

Coupon Payment

A periodic interest payment made to bondholders during the life of a bond.