Question

Other things remain equal, which of the following factors causes the market supply curve of Blue-ray players to shift leftwards? o The costs of producing a single Blue-ray plaver increases. The number of firms selling Blue-ray players increases The sellers are expecting the price of Blue-ray players to decline in the soon future. Non of the above factors causes the market supply curve of Blue-ray players to shift leftwards

Answer 1

The costs o producing the single blue- ray player is the marginal cost of product, when the marginal cost increases the total costs also increases and this is the rise in the cost of production. When there is a rise in the cost of production, the firm will cut back their production and this will shift the aggregate supply curve to the left. So the price will raise and the quantity will decrease.

The increase in the number of sellers would shift the supply curve to the right and the price decrease and the quantity will increase. If suppliers expect a lower price in the future the sellers tries to sell more today. So this is also a rightward shift of the curve.

Ans: The costs of single blue-ray player increases.