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

Question

Quizplus · Accepted Answer

A reduction in the price of HDTVs will cause a movement along the supply curve as producers will be willing to supply more HDTVs at a lower price. An improvement in technology and an expectation of lower prices in the future may shift the supply curve to the right, increasing the quantity supplied at any given price. An increase in resource costs will shift the supply curve to the left, decreasing the quantity supplied at any given price.

Which of the Following Will Cause, Other Things Being Equal