Indicate which change in the value of each of the following determinants of supply leads to a movement along the supply curve not a shift in the supply curve. a. The change in factor productivity b. The change in the price of other related goods c. The change in market price of the good d. The change in resource prices

Respuesta :

Answer:

(a) Shift in the supply curve

(b) Shift in the supply curve

(c) Movement along the supply curve

(d) Shift the supply curve.

Explanation:

When there is any change in the price of the good then as a result there is a change in the quantity supplied of that good and there is a movement along a  supply curve.

When there is any change in the factors other than price then as a result there is a shift in the supply curve.

(a) If there is an improvement in the factor productivity then as a result this will  increase the production of the good and this will shift the supply curve rightwards.

(b) This will shift the supply curve of the product.

(c) If there is an increase in the price of the good then as a result there is an increase in the quantity supplied of the good and there is a upward movement along the supply curve.

(d) If there is an increase in the resource prices then as a result this will increase the cost of production of the good. Hence, there is a fall in the supply of the product and there is a leftward shift in the supply curve.

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