Which of the following will cause, other things being equal, a movement along the supply curve for LED televisions?
A)an improvement in the technology of producing LED televisions
B)an increase in resource costs for producing LED televisions
C)a reduction in the price of LED televisions
D)an expectation that the price of LED televisions will be lower in the future

Question

Quizplus · Accepted Answer

A reduction in the price of LED televisions will cause a movement along the supply curve for LED televisions because it represents a change in the quantity supplied at each price, resulting in a different supply schedule or curve. An improvement in technology (A) would shift the supply curve to the right, increasing the quantity supplied at each price. An increase in resource costs (B) would shift the supply curve to the left, decreasing the quantity supplied at each price. An expectation that the price of LED televisions will be lower in the future (D) might lead to a decrease in current production, but it would not shift the supply curve unless it caused a change in current production costs.

Which of the Following Will Cause, Other Things Being Equal