Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left,ceteris paribus.Figure 3.1 Shifts of Supply and Demand for Flat-screen TVs: the technology required for flat-screen TV production becomes cheaper.
A)A.
B)B.
C)C.
D)D.

Question

Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left,ceteris paribus.Figure 3.1 Shifts of Supply and Demand for Flat-screen TVs: the technology required for flat-screen TV production becomes cheaper. 
A)A. 
B)B. 
C)C. 
D)D.

Quizplus · Accepted Answer

A decrease in the cost of production would shift the supply curve to the right. Option B shows a rightward shift of the supply curve, indicating an increase in supply at each given price level. Option A shows a leftward shift of the demand curve, which is not relevant in this scenario. Option C shows a rightward shift of the demand curve, which is also not relevant in this scenario. Option D shows a leftward shift of the supply curve, which is opposite to what would occur with a decrease in production costs.

Choose the Letter of the Diagram in Figure 3