Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jason runs a company that produces both classical guitars and acoustic guitars. He allocates his limited resources to manufacture either type of instrument depending on

Jason runs a company that produces both classical guitars and acoustic guitars. He allocates his limited resources to manufacture either type of instrument depending on demand. Later this year, Jason expects the demand and price for acoustic guitars to rise.

Select the item from the list provided to make the following statements true.

- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Jason's expectation would result in his current supply of acoustic guitars __________.

- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

If the price of acoustic guitars does rise as expected, and Jason shifts more of his production resources towards making acoustic guitars, the will be a/an _________________ for classical guitars

- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

If Jason's company's main classical guitar producer is met with an unfortunate accident that rendered him unable to work, then there will be a/an ________________ for his classical guitars (Assume ceteris paribus, meaning the scenaios in 1. and 2. do not affect this question)

1.

upward movement along the supply curve

2.

downward movement along the supply curve

3.

shifting left

4.

decrease in supply

5.

increase in supply

6.

shifting right

7.

decrease in demand

8.

increase in the number of suppliers

9.

rightward shift of the supply curve

10.

leftward shift of the supply curve

11.

to remain unchanged

12.

increase in demand

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Basic Business Statistics Concepts And Applications

Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel

12th Edition

132168383, 978-0132168380

More Books

Students also viewed these Economics questions