Chegg Study Guided Solutions and Study Help Cheggcom MindTa

Chegg Study Guided Solutions and Study Help | Chegg.com MindTap Cengage Learningg MINDTAP Cameron Carritt (? Homework (Some Ch 03 and Some Ch 04) Due Today at 11 PM CST Back to Assignment Average: 1 10. Movements along versus shifts of supply curves Consider the market supply of donuts. Complete the following table by indicating whether an event will cause a movement along the supply curve for donuts or a shift of the supply curve for donuts, hoiding ail eise constant. Event An increase in the number of producers An increase in the price of donuts A change in technology that makes it more costly to produce donuts Movement Along Shift Grade It Now Save & Continue Continue without saving A-Z

Solution

Increase in number of producers is SHIFT of the supply curve.
Explanation: The supply curve is based on ceteris paribus whihc includes fixed number of producers. Change in number of producers would shift out the supply curve.

Increase in price of donuts is MOVEMENT ALONG the supply curve.
Explanation: Any change in price causes movement along the supply curve.

A change in technology is SHIFT of the supply curve.
Explanation: The supply curve is made assuming constant technology. A technological change would lead to shiftinf of the supply curve.