(Figure A: Supply Right Shift) (Figure B: Supply Left Shift) Refer to the two figures. Which of the following statements is TRUE? I. Figure A depicts the expectation that the future price will decrease. II. Figure A depicts the entry of foreign producers because of a reduction in trade barriers. III. Figure B depicts falling input prices. IV. Figure B depicts technological innovations. V. Figure B depicts a decrease in taxes.

Question

(Figure A: Supply Right Shift) (Figure B: Supply Left Shift) Refer to the two figures. Which of the following statements is TRUE?  I. Figure A depicts the expectation that the future price will decrease. II. Figure A depicts the entry of foreign producers because of a reduction in trade barriers. III. Figure B depicts falling input prices. IV. Figure B depicts technological innovations. V. Figure B depicts a decrease in taxes.

Quizplus · Accepted Answer

The Answer of (Figure A: Supply Right Shift) (Figure B: Supply Left Shift) Refer to the two figures. Which of the following statements is TRUE?  I. Figure A depicts the expectation that the future price will decrease. II. Figure A depicts the entry of foreign producers because of a reduction in trade barriers. III. Figure B depicts falling input prices. IV. Figure B depicts technological innovations. V. Figure B depicts a decrease in taxes.