All of the following shift the supply of watches to the right except...?
A.
An advance in the technology used to manufacture watches
B.
A decrease in the wage of workers employed to manufacture watches
C.
An increase in the price of watches
D.
Manufacturers' expectation of higher watch prices in the future
The Answer Is:
C
This question includes an explanation.
Explanation:
A supply curve will slope upward from left to right showing more supply at higher prices, as illustrated in the graph below:
A movement along the supply curve will be brought about by a change in price, but a shift of the whole curve will be caused by a determinant other than price:
- The physical feasibility and time and energy required to produce the products
- Technology and innovation
- The objectives of the producers and their future expectations
- Prices of other goods and services
- Government's policies
LO 2, AC 2.2
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