An increase in the price of tomatoes should cause the supply of ketchup to shift to the right.

Question

Quizplus · Accepted Answer

There is no direct relationship between the price of tomatoes and the supply of ketchup. The supply of ketchup would be affected by factors such as the price of its raw materials (such as tomatoes) and the cost of production, among other things. A price increase in tomatoes may affect the supply of tomato-based products such as tomato sauce or salsa, but not necessarily ketchup.

An Increase in the Price of Tomatoes Should Cause the Supply