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Homework answers / question archive / Identify four shift factors of supply with the correct explanation of how each affects supply
Identify four shift factors of supply with the correct explanation of how each affects supply.
Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.
| Producers expect prices of their products to change in the future. As the price that producers expect to sell their products for increases, supply decreases. | |
| Income declines. As income rises, supply increases. | |
| Reduction in taxes paid by consumers. As taxes rise, supply falls. | |
| The price of inputs changes. As the price of inputs rises, supply decreases. | |
| When new production technologies are introduced the cost of production falls and supply increases. | |
| Change in taxes paid by producers. As the amount of taxes that producers pay increases, supply decreases. | |
| Change in consumer tastes. As the taste for a product rises, supply increases. |
The four factors that shift the supply curve are:
a. Producers expect prices of their products to change in the future. As the price that producers expect to sell their products for increases, supply decreases.
b. The price of inputs changes. As the price of inputs rises, supply decreases.
c. When new production technologies are introduced the cost of production falls and supply increases.
d..Change in taxes paid by producers. As the amount of taxes that producers pay increases, supply decreases.
The other factors affect the demand curve not the supply curve.
