Which of the Following Would Most Likely Shift the Supply

question 329

Multiple Choice

Which of the following would most likely shift the supply curve to the left for Wii video games?

• A) an increase in the price of Wii video games
• B) a decrease in the price of computer chips used to make Wii games
• C) a decrease in the demand for Wii games
• D) an increase in the price of electronic components used to produce the Wii games

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Definitions:

Government Spending

The total amount of money spent by the government on various services and projects, including education, defense, infrastructure, and welfare programs.

Crowding-Out Effect

Describes a situation in economics where increased public sector spending reduces or eliminates private sector spending, often due to higher interest rates or borrowed funds.

Private Saving

The portion of individual or household income that is not spent on consumption but saved for future use.

Private Investment

The expenditure by businesses on capital goods, such as machinery and buildings, and changes in inventories.