When there is a change in a non-price determinant of supply:Multiple choice question.the supply curve shifts and there is a movement along the demand curve.the supply curve shifts and there is a change in the demand.the supply curve shifts and there is a no change in the quantity demanded.the quantity supplied changes and there is a shift in demand.
Question
When there is a change in a non-price determinant of supply:Multiple choice question.the supply curve shifts and there is a movement along the demand curve.the supply curve shifts and there is a change in the demand.the supply curve shifts and there is a no change in the quantity demanded.the quantity supplied changes and there is a shift in demand.
Solution
The correct answer is: the supply curve shifts and there is no change in the quantity demanded.
Here's why:
A change in a non-price determinant of supply (like technology, taxes, or costs of production) will cause the entire supply curve to shift. This is because the change affects the overall cost of production, which in turn affects the quantity that suppliers are willing and able to produce at each price level.
However, this change in supply does not directly affect the quantity demanded. The quantity demanded is determined by the demand curve, which is influenced by factors like consumer preferences, income, and the prices of related goods. Unless one of these factors changes, there will be no change in the quantity demanded.
So, when there is a change in a non-price determinant of supply, the supply curve shifts and there is no change in the quantity demanded.
Similar Questions
A movement along the supply curve is the result of a change in _______ , while a shift in the supply curve is the result of a change in ________.Multiple choice question.price; non-price determinantsnon-price determinants; pricedemand; priceprice; demand.
The non-price determinants or other factors that affect demand are:Multiple choice question.held constant for any given demand curve.the same as those that influence the supply curve.the price and quantity demanded.changing along the demand curve.
The supply curve shifts in response to changes in non-price of supply. (Enter one word in the blank.)
non-price determinants and how they cause shifts in thedemand/supply curve
A market experiencing a supply shift will see its equilibriumMultiple choice question.price change, but its quantity be unchanged.price and quantity both change.quantity change, but its price be unchanged.
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