Asked by Eunice Gwendolyn on Jul 23, 2024
Verified
Suppose that at prices of $1, $2, $3, $4, and $5 for product Z, the corresponding quantities supplied are 3, 4, 5, 6, and 7 units, respectively. Which of the following would increase the quantities supplied of Z to, say, 6, 8, 10, 12, and 14 units at these prices?
A) improved technology for producing Z
B) an increase in the prices of the resources used to make Z
C) an increase in the excise tax on product Z
D) increases in the incomes of the buyers of Z
Excise Tax
A tax directly levied on certain goods, services, or activities, often included in the price of the product.
Improved Technology
Advances or enhancements in technology that lead to better efficiency, productivity, or outcomes in various fields.
Quantities Supplied
The amounts of goods or services that producers are willing and able to sell at various prices over a certain time period.
- Analyze the impact of external factors, such as technology improvements and changes in related markets, on supply and demand.
Verified Answer
NB
Narmeen BashirJul 28, 2024
Final Answer :
A
Explanation :
Improved technology for producing Z would make production more efficient, leading to an increase in the quantity supplied at each price level.
Learning Objectives
- Analyze the impact of external factors, such as technology improvements and changes in related markets, on supply and demand.