Question

Assuming all other variables that affect supply are held constant, which of the following outcomes happen in the market for DVD players if the price of DVD players increases? Select the correct answer below:
a. The supply curve for DVD players will shift to the left.
b. The supply curve for DVD players will shift to the right.
c. There will be an increase in the quantity supplied of DVD players.
d. The quantity supplied of DVD players will remain unchanged.

Answer 1

Answer:

The correct answers are letters "B" and "C": The supply curve for DVD players will shift to the right; There will be an increase in the quantity supplied of DVD players.

Explanation:

According to the supply law, as the price of a good or service increases its quantity supplied will increase -shift in the supply curve to the right. A decrease in the price of a good or service represents a decrease in the quantity supplied -shift in the supply curve to the left. The relationship between price and quantity supplied is directly proportional.