When an increase in factor cost shifts the supply curve to the right, as a result...
When an increase in factor cost shifts the supply curve to the right, as a result the market clears at a lower price and a higher quantity.
A.True
B. False
Homework Answers
FALSE.
An increase in factor cost increases the cost of inputs, thus raising production cost. When cost increases, firms decrease production and output, so market supply falls. Supply curve shifts to the left, so price increases and quantity decreases.
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When an increase in factor cost shifts the supply curve to the
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13. An increase in the demand for a product means that the a. supply curve shifts to the left. b. demand curve shifts to the right. C. supply curve shifts to the right. d. demand curve shifts to the left. Exhibit 3-15 Supply and demand curres for good X Price per unit (dollars) 100 200 300 400 Quantity of pedx (unis per time period 14.- In the market shown in Exhibit 3-15, the equilibrium price and quantity of good X...
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