Question

In: Economics

Supply curve of Tim Horton’s coffee shifts to the left when: a there is a change...

Supply curve of Tim Horton’s coffee shifts to the left when:

a

there is a change in the consumer's taste

b

there is a change in the price.

c

there is a change in the number of buyers

d

there is a change in the cost of production

Solutions

Expert Solution

Answer : Option 'd' is the correct Answer

A decrease in supply would cause the supply curve to shift to the left.

Factors cause a shift in the supply curve are input costs(cost of resources), technology, expectations, number of firms (sellers)

Consumer's taste causes a shift in the demand curve.

Change price causes supply to shift left/right on when the others parameters are constant.

Change in the number of buyers cause a shift in the demand curve.

Change in input prices (increase) or increase in the cost of production will cause the supply curve shifts to the left and vice-versa.


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