Which of the Following Would Shift the Supply Curve for Smartphones

question 56

Multiple Choice

Which of the following would shift the supply curve for smartphones to the right?

• A)an increase in the price of a substitute in production
• B)an increase in consumer income (assuming that all smartphones are normal goods)
• C)a decrease in the number of firms that produce smartphones
• D)a decrease in the price of an input used to produce smartphones

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Definitions:

Average Variable Cost

The total variable costs (costs that change with the level of output) of production divided by the quantity of output produced.

Marginal Cost

The financial outlay for producing an incremental unit of a product or service.

Short-Run Supply

The total quantity of a good or service that businesses are willing and able to sell at current prices in a short time period.

Implicit Cost

The opportunity costs that are not directly paid or seen but represent real costs to a business, such as the value of time or resources.