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Chapter 3: Q. f- For Critical Thinking (page 64)

Has the market supply curve in China shifted rightward or leftward?Explain

Short Answer

Expert verified

Rightward shift.

Step by step solution

01

Step1. Given information

A large number of new vehicle producing firms entered the automobile sector of China.

02

Step2. Explanation

Since the number of suppliers increased, the supply of automobiles in the market shall rise. This will shift the supply curve rightwards.

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Most popular questions from this chapter

Assume that the cost of aluminum used by soft-drink companies increases. Which of the following correctly describes the resulting effects in the market for soft drinks distributed in aluminum cans? (More than one statement may be correct.)

a. The demand for soft drinks decreases.

b. The quantity of soft drinks demanded decreases.

c. The supply of soft drinks decreases.

d.The quantity of soft drinks supplied decreases.

In Fig 3-2, the current position of the demand curve is D1, and the price of a portable power bank is $3. If there is an increase in the price of tablet devices that are complements to portable power banks, will the demand curve shift to D2 or to D3? What is the change in the amount of portable power banks demanded?

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What has been the direction of the shift in the demand for breakfast cereals?

In the market for portable power banks(a normal good), explain whether the following events would cause an increase or a decrease in demand or an increase or decrease in the quantity demanded. Also, explain what happens to the equilibrium quantity and the market-clearing price.

a. There is an increase in the price of carry cases for portable power banks.

b. There is a decrease in the price of devices used to charge portable power banks.

c. There is an increase in the number of consumers of portable power banks.

d. A booming economy increases the income of the typical buyer of portable power banks.

e. Consumers of portable power banks anticipate that the price of this good will decline in the future.
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