Asked by I’m Ashes on May 06, 2024
Verified
In the market for tacos,the factor that does NOT shift the supply curve to the left is:
A) an increase in the price of beef.
B) an increase in the wages of taco shop workers.
C) fewer taco shops.
D) a decrease in the price of tacos.
Price of Beef
The market value assigned to beef, influenced by factors like supply, demand, production costs, and market conditions.
Wages of Taco Shop Workers
The compensation paid to employees working in a taco shop, including hourly or salaried earnings.
Taco Shops
Food outlets specializing in the sale of tacos and related Mexican cuisine.
- Gain an understanding of the variables affecting market supply.
- Pinpoint the causes contributing to the elevation or reduction in the supply of a commodity.
Verified Answer
MP
Madelyn PorterMay 06, 2024
Final Answer :
D
Explanation :
A decrease in the price of tacos would not shift the supply curve to the left. In fact, it could potentially increase the quantity supplied if taco shops perceive that there is a larger demand at the lower price. In contrast, an increase in the price of beef (a key input in taco production) would increase production costs and shift the supply curve to the left. An increase in wages for taco shop workers would also increase production costs and shift the supply curve to the left. Fewer taco shops would decrease the number of available tacos in the market and shift the supply curve to the left.
Learning Objectives
- Gain an understanding of the variables affecting market supply.
- Pinpoint the causes contributing to the elevation or reduction in the supply of a commodity.