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Income Price of related goods Technology Tastes and preferences Resource prices

ID: 1218816 • Letter: I

Question

Income Price of related goods Technology Tastes and preferences Resource prices Number of producers Indicate whether a change in the value of each of the following determinates of supply leads to a movement along the supply curve or a shift in the supply curve Change in market price: Change in factor productivity Change in producer expectations: Change in the price of other goods: Change in technology: Change in technology: Change in resource prices: Change in taxes: Given the following diagram, indicate whether these changes represent a change in supply or a change in quantity supplied.

Explanation / Answer

Answer:

Indicate whether a change in the value of each of the following determinants of supply leads to a movement along the supply curve of a shift supply curve:

i. Change in market price: movement along the supply curve

ii. Change in factor productivity: a shift in the supply curve

iii. Change in producer expectations: a shift in the supply curve

iv. Change in the price of other goods: a shift in the supply curve

v. Change in technology: a shift in the supply curve

vi. Change in resource prices: a shift in the supply curve

vii. Change in taxes: a shift in the supply curve