Some producers are chatting. Which one of the following quotations refers to a movement along the...

Some producers are chatting. Which one of the following quotations refers to a movement along the supply curve? "Raw material prices have sky-rocketed; we will have to pass the cost on to our customers." "Wage increases have forced us to raise our prices." "New competitors in the industry are causing prices to fall." "We anticipate a big increase in demand. Our product price should rise, so we are planning for an increase in output." "Our new, sophisticated equipment will enable us to undercut our competitors."

Expert Solution

Statement 1 :"Raw material prices have sky-rocketed; we will have to pass the cost on to our customers." - This statement implies increase in the cost of production due to increase in raw material prices hence supply will reduce which implies a leftward shift of supply curve and leads to movement along the demand curve. Hence this doesn't lead to movement along the supply curve.

Statement 2 : "Wage increases have forced us to raise our prices." - This statement again implies increase in the cost of production due to increase in wages and hence will lead to leftward shift of supply curve and leads to movement along the demand curve due to increased cost and hence a reduction in the supply and increased prices. Therefore, this doesn't lead to movement along the supply curve.

Statement 3 : "New competitors in the industry are causing prices to fall." - This statement implies increased supply in the market of a given commodity hence supply curve will shift to right and leads to movement along the demand curve and ultimately leading to fall in the prices. Again this doesn't lead to movement along the supply curve.

Statement 4 : "We anticipate a big increase in demand. Our product price should rise, so we are planning for an increase in output.". This statement implies increase in the demand hence the demand curve will shift to right and when the demand curve shifts right and result in movement along the supply curve from point A to point B resulting in increased prices and output. Hence, this lead to movement along the supply curve.

Statement 5 : "Our new, sophisticated equipment will enable us to undercut our competitors." - This statement implies increased supply in the market of a given commodity due to efficient technology which enables the producer either to produce more output with same input or reduced cost for given level of output either of them will result in increased supply hence supply curve will shift to right and leads to movement along the demand curve and ultimately leading to fall in the prices. Again this doesn't lead to movement along the supply curve.

Rahul Sunny answered 1 year ago

Does a change in producers’ technology lead to a movement along the supply curve or a...

Does a change in producers’ technology lead to a movement along the supply curve or a shift in the supply curve? Does a change in price lead to a movement along the supply curve or a shift in the supply curve? Give Examples of that.

Which of the following would result in a movement along the demand curve? a. an increase...

Which of the following would result in a movement along the demand curve? a. an increase in the prices of inputs in production b. a change in preferences c. an increase in the price of a substitute in consumption d. a decrease in income

Which of the following statements about the movement of cargo along the axon of a neuron...

Which of the following statements about the movement of cargo along the axon of a neuron is TRUE? Microtubules within the axon support the unidirectional motion of materials from the cell body to the axon terminal, while materials transported back from the axon terminal to the cell body move along intermediate filaments. Movement toward the axon terminal is propelled by ATP hydrolysis while movement towards the cell body is propelled by GTP hydrolysis. Every dynein and kinesin can move their...

Which of the following elasticities measure a movement along a curve rather than a shift in...

Which of the following elasticities measure a movement along a curve rather than a shift in the curve? (a) The price elasticity of demand, (b) the income elasticity of demand (c) the cross elasticity of demand, or (d) all of them

Which of the following reflexes speeds-up (enhances) the movement of material along the GI tract? (in...

Which of the following reflexes speeds-up (enhances) the movement of material along the GI tract? (in the direction of the rectum or “downstream”) Group of answer choices A. Gastroileal reflex B. Gastrocolic reflex C. Enterogastric reflex A and B A, B, and C

In the following, Determine if there is a movement along the curve (change in quantity supplied)...

In the following, Determine if there is a movement along the curve (change in quantity supplied) or a shift of the curve (change in the supply curve); Identify the nonprice determinant that changed in those instances where there is a change in the supply curve; Identify any assumptions that you made; Indicate if the supply curve increases or decreases or if there is an increase or decrease in the quantity supplied. a. Consider the market for peanut butter. Assume that...

Tectonic movement refers to: A. the movement of a dozen enormous rigid plates and many smaller...

Tectonic movement refers to: A. the movement of a dozen enormous rigid plates and many smaller ones that make up the lithosphere. B. the winds driving clouds around the earth. C. the gradual churning movement of the earth's molten core. Question 2 Which of the following is true of Pangaea? A. It was a super-continent formed by all of the continents coming together. B. Pangaea resulted from tectonic movements. C. The climates on Pangaea were essentially the same as they...

Which of the following statements is NOT correct? Select one: a. Status asthmaticus refers to the...

Which of the following statements is NOT correct? Select one: a. Status asthmaticus refers to the typical chronic nature of asthma b. The aetiology of asthma is not fully understood c. Many factors can trigger asthma attacks d. It is estimated that some 235 million people have asthma worldwide e. Urbanization is associated with increased asthma prevalence

Only one thing can cause movement along a product’s demand curve --- that is, cause a...

Only one thing can cause movement along a product’s demand curve --- that is, cause a change in quantity demanded for that product --- and that’s a change in that product’s price. On the other hand, there are five key variables that can cause a product’s demand curve to shift to the left or right --- that is, lead to a change in demand. Coca-Cola is experiencing shifts in the U.S. demand curve for its famous cola soft drink, as...

Which one of the following statements, about the ability of retail producers who do not hold...

Which one of the following statements, about the ability of retail producers who do not hold a surplus lines license to place surplus lines insurance with an insurance customer, is true? Select one: a. They are free to place this business directly, on their own b. They may not become involved in surplus lines insurance in any way c. They may place this business only through a licensed surplus lines intermediary d. They may place this business on their own,...

Question