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 Flat-screen TVs: the technology required for flat-screen TVs 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 Flat-screen TVs: the technology required for flat-screen TVs production becomes cheaper.
 
A) A 
B) B. 
C) C. 
D)D.

Quizplus · Accepted Answer

This situation represents a shift in supply, as the technology becoming cheaper will likely encourage more producers to enter the market and increase the quantity supplied at each price level. This shift would cause the supply curve to shift to the right, as depicted in diagram B.

Choose the Letter of the Diagram in Figure 3