Some Producers Are Chatting Over a Beer

question 72

Multiple Choice

Some producers are chatting over a beer. Which one of the following quotations refers to a leftward shift of the supply curve?

• A)"Wage increases have forced us to raise our prices."
• B)"Our new, sophisticated equipment will enable us to undercut our competitors."
• C)"Raw material prices have sky-rocketed; we will have to pass the cost on to our customers."
• D)"We anticipate a big increase in demand. Our product price should rise, so we are planning for an increase in output."
• E)Both A and C

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Definitions:

Subduction Zone

A geological region at convergent boundaries where one tectonic plate moves under another and into the mantle, leading to volcanic and seismic activity.

Aftershocks

Smaller earthquakes that occur after a main earthquake and in the same area.

Landslides

The descent of soil, stones, or detritus downhill caused by gravitational pull.

Tsunami

A series of ocean waves with extremely long wavelengths caused by large-scale disturbances such as underwater earthquakes, volcanic eruptions, or landslides.