Question 2 Not yet answered Points out of t1 P Flag question

Question 2 Not yet answered Points out of t1 P Flag question A decrease in the cost of inputs will shift the supply curve down and to the right. Select one: True O False Question 3 Not yet answered Points out of 1 p Flag question Which of the following statements about the supply curve is TRUE? Select one: Oa. As the price of a good rises, it becomes profitable to sell the higher-cost good. b. All sellers are willing to sell a good only when the price is very high. O c. As the price of a good rises, it becomes profitable to sell only the lower-cost good. O d. All sellers are able to sell a good only when the price is very low Question 4 Answer saved Points out of 1

Solution

2.

Supply curve is a line segment of establishing relationship between quantity supply and price of each quantity. The law of supply is at higher price higher would be the quantity supply; therefore, the supply curve is upward slopped from left to right.

If input cost decreases, supplier can supply more at the same market price; it shifts the supply curve to the right.

Answer: True

3.

Answer: a

The goods having higher cost must be sold when its price rises. This is the way of getting recovery value of higher-cost items.

Since selling lower-cost item is not an issue, its recovery would not be a problem.

In this way profit would be increased.