Yesterday, seller A supplied 400 units of a good X at 10 ner unit. Today, seller A supplies the same quantity of units at 5 per unit, Based on this evidence, seller A has experienced a (an)?
Answers
Answered by
6
Answer:
Increase in supply.
Explanation:
The only way sell A could supply 400 units of good X at $10 yesterday and $5 today is for the supply curve to shift rightward.
Answered by
0
Answer:
b. increase in supply.
Explanation:
In the given scenario, the supplier typically supplies 400 units of good X at the price of $10 per unit. Later, the price reduces, but the supplier continues with the 400 units. In this case, there is no information on any change in demand. As a result, the supply curve must have experienced a downward movement causing the price to experience downward pressure. So, the supplier can only supply this amount of goods at a reduced price.
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