Due to a sudden fall in the demand, the price of coffee went down. As a result, ______

supply curve shifts to the right

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supply curve shifts to the left

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the slope of the supply curve decreases

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none of these

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Solution

The correct option is D
none of these

Change in market price corresponds to a movement along the supply curve and not a shift in the supply curve. All other factors, being equal, there is no change to the supply curve.

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Similar questions

If at the market equilibrium, the supply is a vertical line and the downward sloping demand curve shifts to the right, then:

Show with the help of a diagram, the effect on equilibrium price and quantity when:
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Q. If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply curve results in _________.

Q. When supply curve shifts to the right, _________.
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D. Prices tend to rise

Q. If a rightward shift of the supply curve leads to a 6 percent decrease in the price and a 5 percent increase in the quantity demanded, the price elasticity of demand is _____.

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Due to a sudden fall in the demand, the price of coffee went down. As a result, ______

The correct option is D none of these Change in market price corresponds to a movement along the supply curve and not a shift in the supply curve. All other factors, being equal, there is no change to the supply curve.

The correct option is D
none of these

Change in market price corresponds to a movement along the supply curve and not a shift in the supply curve. All other factors, being equal, there is no change to the supply curve.