Asked by Mohamad Arshil Vahora on Jun 29, 2024
Verified
The location of the product supply curve depends on
A) production technology.
B) the number of buyers in the market.
C) the tastes of buyers.
D) the location of the demand curve.
Product Supply Curve
A graphical representation showing the relationship between the price of a product and the quantity of the product that a supplier is willing and able to supply.
Production Technology
The methods, equipment, and processes used to produce goods or services, influencing efficiency and output quality.
Demand Curve
A graph depicting the relationship between the price of a good or service and the quantity demanded for a given period.
- Fathom the concept of the supply curve and its association with price levels and the volume of goods provided.
- Recognize the variables responsible for alterations in the supply curve.
Verified Answer
AW
Andrew WilliamsJun 30, 2024
Final Answer :
A
Explanation :
The location of the product supply curve depends on production technology because it determines the cost of producing a product and therefore, the amount of output that producers are willing and able to supply at a certain price. As production technology improves, the cost of producing a product decreases and the supply curve shifts to the right, indicating that more output can be produced at a given price.
Learning Objectives
- Fathom the concept of the supply curve and its association with price levels and the volume of goods provided.
- Recognize the variables responsible for alterations in the supply curve.