Indicate Whether Each of the Following Situations Would Shift the Supply

question 304

Essay

Indicate whether each of the following situations would shift the supply curve to the left, to the right, or not at all.
a.an increase in the price of an input
b.an increase in productivity
c.an increase in the price of a substitute in production
d.a decrease in the expected future price of a product
e.a decrease in the current price of the product

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Definitions:

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a product and the actual market price they pay.

Government Revenue

The money received by a government from taxes, fees, fines, intergovernmental grants, and other sources to fund public spending.

Tariff

A tax imposed by a government on goods and services imported from other countries to encourage domestic consumption and protect the local industry.

Producer Surplus

The discrepancy between the price at which sellers are prepared to offer a product and the actual price it sells for.