Which of the Following Would Shift the Supply Curve for MP3

question 148

Multiple Choice

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

• A)An increase in the price of an input used to produce MP3 players
• B)A decrease in consumer tastes for MP3 players
• C)An increase in the number of firms that produce MP3 players
• D)An increase in the productivity of the workers who produce MP3 players

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Definitions:

Market Risk Premium

Market Risk Premium is the additional return that an investor expects to receive from holding a risky market portfolio instead of risk-free assets.

Company-specific Risk

A type of risk that affects a specific company or industry, distinguished from market-wide risk.

Risk-free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.

Market Risk Premium

The extra return over the risk-free rate that investors require to hold a risky market portfolio.