An Upward Shift in the Supply Curve of Good Y

question 49

Multiple Choice

An upward shift in the supply curve of good Y, a complement of some good X, will tend to cause:

• A)the demand curve for X to shift to the left.
• B)the demand curve for X to shift to the right.
• C)the price of X to increase even though the demand curve for X is unaffected.
• D)the price of X to fall even though the demand curve for X is unaffected.
• E)none of the above.

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Definitions:

International Trade

The exchange of goods and services between countries, allowing nations to expand their markets and access goods that are not produced domestically.

Absolute Advantage

Refers to the ability of a country, individual, or firm to produce more of a good or service with the same amount of resources than competitors.

Economies of Scale

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

Domestic Price

The price of goods or services within a country's borders, influenced by local supply and demand conditions.