Which of the Following Would Shift the Supply Curve for MP3

question 76

Multiple Choice

Which of the following would shift the supply curve for MP3 players to the right?

• A)an increase in the price of a substitute in production
• B)an increase in consumer income (assuming that all MP3 players are normal goods)
• C)a decrease in the number of firms that produce MP3 players
• D)a decrease in the price of an input used to produce MP3 players

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Cycle Inventory

The portion of inventory available to meet normal demand during a given period without restocking.

Increase Cost

The rise in expenses associated with the production, acquisition, or maintenance of goods and services.

Aggregating

The process of combining multiple items, data points, or aspects into a single group or category for the purposes of analysis or reporting.