If the Supply of IPods Increases,then

question 199

Multiple Choice

If the supply of iPods increases,then
i.the supply curve for iPods has shifted rightward.
ii.the price of iPods has decreased.
iii.there will be a movement upward along the iPod supply curve.

• A) i only
• B) i, ii and iii
• C) i and ii
• D) ii and iii
• E) i and iii

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Definitions:

Government-Set Barriers

Regulations and policies established by governments to control the entry of firms into certain markets or to protect domestic industries from foreign competition.

Economies of Scale

The cost advantage experienced by a firm when it increases its level of output. The average costs per unit of output decrease with the scaling up of production.

Diamond-Mining Company

An entity engaged in the extraction of diamonds from the earth through mining operations.

Diseconomies Of Scale

The phenomenon where production costs per unit increase as a firm or production process increases in size, often due to inefficiencies.