​Figure 52

question 13

Multiple Choice

​Figure 5.2. The figure shows the supply and demand curves of a firm.
-Refer to figure 5.2. Which of the following is true?​

• A)​The supply curve of the product shifts to the left, with a fall in the cost of producing the commodity.
• B)​With a fall in the cost of production, sellers are willing to supply Q₁ units of the product at a price of P₂, which is lower than the initial price P.
• C)​With a fall in the cost of production, sellers are willing to supply Q units of the product at a price of P₂, which is lower than the initial price P.
• D)​There is an increase in the demand for the product with a fall in the cost of producing the commodity.
• E)​An increase in the cost of producing the commodity leads to an upward movement along the supply curve of the product.

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Definitions:

Sellers

Individuals or entities that offer goods or services for sale to consumers or other businesses.

Inefficently

Operating in a manner that does not maximize productivity or use resources in the best possible manner.

Taxes

Imperative monetary contributions or distinct types of taxation demanded from a taxpayer by a public authority to cover the costs of governmental functions and diverse public financial needs.

Incentives

Motivators or stimuli that encourage or promote certain behaviors or actions by offering rewards or benefits.