The Supply of Index Cards Is Likely to Shift to the Right

question 130

Multiple Choice

The supply of index cards is likely to shift to the right if:

• A)the price of wood pulp used in the production of index cards increases.
• B)the technology used in index card production becomes more expensive.
• C)the price of index cards increases.
• D)the price of its substitute good decreases.
• E)the expected future price of index cards is higher than the current price.

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Definitions:

Providing Externalities

The act of producing results (positive or negative) that affect third parties who are not directly involved in the economic transaction.

Promoting Competition

Strategies and policies implemented to encourage rivalry among businesses, aimed at improving quality, lowering prices, and fostering innovation.

Public Goods

Public goods are commodities or services that are made available to all members of a society, typically free of charge, by the government or a not-for-profit organization, and are characterized by non-excludability and non-rivalrous consumption.

Gross Domestic Product

The total value of all goods and services produced over a specific time period within a country's borders.