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Homework answers / question archive / 1)All of the following will shift the supply curve of bread to the right except: a) an increase in the price of bread b) an improvement in technology that reduces baking costs c) a decrease in the price of flour d) an expectation that the price of bread will fall in the future 2)The price of shoes increases
1)All of the following will shift the supply curve of bread to the right except:
a) an increase in the price of bread
b) an improvement in technology that reduces baking costs
c) a decrease in the price of flour
d) an expectation that the price of bread will fall in the future
2)The price of shoes increases. The market supply curve for shoes will:
a) not shift
b) shift to the left
c) not enough information to answer this
d) shift to the right
1)
All of the following will shift the supply curve of bread to the right except an increase in the price of bread.
Therefore, the correct option is A.
2)
A. Not shift
Reason: Changes in price of the shoes will bring changes along the supply curve. This means that, when price of shoes changes, the quantity supplied of shoes will change, but there will be no change in supply of shoes. The supply curve will remain as it is. Shifts in the supply curve occur due to changes in non price factors which can influence the supply of the good.