Which One of the Following Would Not Shift the Supply

question 5

Multiple Choice

Which one of the following would not shift the supply curve of good X to the right?

• A)a fall in the price of the factors of production used in producing X
• B)an improvement in technology used in the production of X
• C)a rise in the price of X
• D)an increase in the price of Y, a complement in production of X
• E)a fall in the price of Y, a substitute in production of X

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Definitions:

Variable Overhead

The indirect production costs that vary in total directly with changes in production volume or activity levels.

Overhead Efficiency

A measure of how effectively a business uses its fixed overheads to generate sales or production output.

Fixed Overhead Budget

A financial plan that forecasts the fixed overhead costs a company expects to incur, regardless of its level of output.

Fixed Overhead Volume

A measurement of the costs that remain constant regardless of the company's level of production or business activity.