Question

Which of the following is a FALSE statement? A. Changes in the price of inputs can cause a shift in supply. B. If the price of other goods change, it can cause a shift in supply. C. Government involvement in the economy will not cause a shift in supply. D. Certain advancements in technology can cause a shift in supply.

Answer 1

Answer:

Government involvement in the economy will not cause a shift in supply is a false statement.

Explanation:

Government involvement can not change directly the supply of products but it can affect the demand through the policies of taxation and subsidies that determine the demand of several products in the market, then this will affect in an indirect way the supply of this product which makes this a false statement.

Answer 2

It is C because government can do anything