Question

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Question 22 2.5 pts Which of the following will not cause the supply curve to shift? A technological change in the production of the good A change in the prices of other goods that producers could be producing A change in the costs of resources needed to produce the good A change in the price of the good

Answer 1

22. A change in the price of the good.

A change in price of the good will cause a movement along the supply curve. A change in any factor other than price will cause a shift of the supply curve.

23. Increase the supply of icecream

As prices of inputs used in production, more of the inputs will be demanded for production and the supply increases. Production expands which in turn increases the supply of icecream.

24. Resources are being devoted to the production of products most desired by society. Allocative efficiency is the market being efficient by producing an output where marginal benefit equals marginal cost.

25. A surplus of 100 units

Since price is above the equilibrium price (40), quantity supplied exceeds quantity demanded. Quantity supplied is 200 units whereas quantity demanded is 100 units . Hence, there is a surplus of 100 units.