Asked by Angelica Hyles on May 11, 2024
Verified
(Figure: Supply of Coconuts) Use Figure: Supply of Coconuts.If the prices of inputs (e.g. ,labor,fertilizer,and fuel) used to produce and transport coconuts increased,it could be represented in the figure as a movement from:
A) A to B.
B) B to A.
C) C to A.
D) E to B.
Prices of Inputs
The costs associated with the materials, labor, and other resources necessary for the production of goods or services.
Produce
To manufacture, grow, or create goods and services for consumption or sale.
Transport
The movement of goods or people from one location to another using various modes such as road, rail, air, or sea.
- Understand the changes in supply and demand representations across multiple market environments.
- Grasp the relationship between price changes and movements along or shifts of the demand and supply curves.
Verified Answer
CP
Calliesta PariseauMay 17, 2024
Final Answer :
C
Explanation :
An increase in input prices would raise the cost of producing coconuts, which would lead to a decrease in supply. This would be represented as a shift to the left of the supply curve, from C to A. Movements along the curve occur in response to changes in the price of the product, not changes in input prices.
Learning Objectives
- Understand the changes in supply and demand representations across multiple market environments.
- Grasp the relationship between price changes and movements along or shifts of the demand and supply curves.