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tatyana61 [14]
2 years ago
6

All of the following can change the supply curve EXCEPT: A. the cost of labor. a change in consumer tastes for the product. B. t

he expectation that prices are about to increase. C. the number of sellers offering the product
Business
2 answers:
zavuch27 [327]2 years ago
7 0

Answer:

The correct answer is: B) A change in the demand for the product.

Explanation:

Changes in demand and changes in the quantity demanded change in the quantity demanded refers to the passage from one point to another within the same curve, (an upward or downward movement) as a result of a decrease or increase in the price of the product. A change in demand is a shift of the entire curve to the right (increase in demand), or to the left (decrease in demand), due to factors other than price.

ladessa [460]2 years ago
4 0

Answer:

a change in consumer tastes for the product.

Explanation:

A change in consumer taste about a product causes the demand curve and not the supply curve to change.

If the cost of Labour increases, cost of production is higher and supply would fall. The supply curve would shift leftward.

If the cost of Labour falls, cost of production is lower and supply would increase. The supply curve would shift to the right.

If it is expected that price would increase, supply would increase and the supply curve would shift to the right.

If the number of sellers increases, supply would increase and the supply curve would shift to the right.

If the number of sellers decreases, supply would fall and the supply curve would shift to the left.

I hope my answer helps you

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The price of gold is currently $1,400 per ounce. The forward price for delivery in one year is$1,500. An arbitrageur can borrow
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Answer:

The arbitrageur should borrow money at 4% per annum since it is cheaper than paying the forward price for delivery

Explanation:

Current price of gold=$1,400 per ounce

Forward price=$1,500

The arbitrageur can either pay the forward price or borrow $1400 and pay the interest of 4% in a year. Consider option 1 paying the forward price of 1500

Option 1

Since there are no additional costs, the total cost for buying the gold=forward price=$1,500

Option 2

If the arbitrageur borrows the 1400 to pay for the gold now, then pay the interest in 1 year;

The total cost=Amount borrowed+interest accrued in 1 year

Total cost=1400+(4%×1400)

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If we compare option 1 to option 2, we notice that option 2 is slightly cheaper than option 1 by $44

(Option 1-Option 2)=(1500-1456)=$44

The arbitrageur should borrow money at 4% per annum since it is cheaper than paying the forward price for delivery

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