Question

An decrease in the price of oranges would lead to a(n)a. a movement down and to the left along the supply curve for oranges. b. a movement up and to the right along the supply curve for oranges. c. increased supply of oranges. d. increase in the prices of inputs used in orange production.

Answer 1

Answer:

A) a movement down and to the left along the supply curve for oranges

Explanation:

Supply curve shows a relationship between the price of goods and the quantity supplied. It tells the amount that producers are willing to supply at each price. The curve shows a plot of price against quantity supplied by the suppliers.

When the price of the orange decreases, producers would not be willing to supply more oranges, therefore the quantity of orange supplied would decrease. Thereby causing a movement down and to the left of the supply curve as a result of decrease in quantity supplied.

Answer 2

Answer:

A movement up and to the right along the supply curves for oranges.

Explanation:

Supply curve can be defined as the graphical representation of the relationship that exists between the product price and quantity of product that a seller is ready and able to supply. The product price is measured on the vertical axis of the graph while the quantity of product supplied is measured on the horizontal axis.

A decrease in the price of oranges would lead to a decrease in the quantity of oranges supplied thereby leading to a movement up and to the right along the supply curve for oranges.