All of the Following Will Cause the Supply Curve of Good

question 105

Multiple Choice

All of the following will cause the supply curve of good A to shift rightward EXCEPT

• A) a reduction in the prices of inputs used to produce good A.
• B) an increase in the number of firms in the industry producing good A.
• C) a decrease in the per-unit tax on good A which producers must pay.
• D) an increase in the market price of good A.

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Definitions:

Elastic

Refers to the responsiveness of the demand or supply of a good or service to changes in its price.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Total Revenue

The entire amount of income generated by the sale of goods or services.

Marginal Revenue

Marginal Revenue is the additional income generated from selling one more unit of a good or service.