Asked by Randell Baley on Jul 17, 2024
Verified
Statement I: A change in supply and a change in quantity supplied are two ways of saying exactly the same thing.
Statement II: A change in income or changes in tastes and preferences for a good will cause a shift in the supply curve.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Supply Curve
A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing and able to supply to the market.
Change in Supply
A change in the quantity supplied of a good or service at at least one price that is caused by factors other than a change in the price of that good or service.
Quantity Supplied
The total amount of a product that producers are willing and able to sell at a given price over a specific period.
- Comprehend the significance of consumer expectations and preferences in determining market demand.
- Understand the influence of technological progress and manufacturing expenses on supply dynamics.
Verified Answer
RT
Reyna TinajeroJul 18, 2024
Final Answer :
D
Explanation :
Statement I is false because a change in supply refers to a shift in the supply curve due to factors other than the price of the good, while a change in quantity supplied refers to a movement along the supply curve due to a change in the price of the good. Statement II is false because changes in income or tastes and preferences affect the demand curve, not the supply curve.
Learning Objectives
- Comprehend the significance of consumer expectations and preferences in determining market demand.
- Understand the influence of technological progress and manufacturing expenses on supply dynamics.