How would a decrease in the price of a substitute good affect the market supply of a product? It would shift the supply curve to the right It would shift the supply curve to the left It would not affect the supply curve It would cause a movement along the supply curve
Question
How would a decrease in the price of a substitute good affect the market supply of a product? It would shift the supply curve to the right It would shift the supply curve to the left It would not affect the supply curve It would cause a movement along the supply curve
Solution
A decrease in the price of a substitute good would not directly affect the market supply of a product. Therefore, it would not shift the supply curve to the right or left, nor would it cause a movement along the supply curve.
However, it could indirectly affect the demand for the product. If the price of a substitute good decreases, consumers may choose to buy more of the substitute and less of the original product. This decrease in demand for the original product could then lead to a decrease in its market supply. But this is an effect on the demand side, not a direct effect on the supply side.
Similar Questions
Would an increase in demand for a product cause the supply curve to shift in any direction? A. No Effect On Supply B. Change In The Slope Of A Supply Curve C. The Supply Curve Will Move To The Right D. The Supply Curve Will Move To The Left
Market EquilibriumSuppose both the supply and demand curves shift to the right. What would be the ultimate impact on the price of the product?The price will increase.The price will decrease.The price will remain the same.The price will depend on the magnitude of change in the demand and supply.
A leftward shift of a supply curve would result from:lower production costs.an increase in the price of an alternative product that could be produced with the same resources.a decrease in the price of the product.more sellers of the product.
What would happen to the demand curve when there is an increase in the price of substitute products ?Outward shift Remains constant Initially inward and then after a period outward shift Inward shift
If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply curve results inGroup of answer choicesa price of zero.an increase in price.a decrease in price.no change in price.
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