Multiple Choice
What happens in the market for blenders if the price of glass, a key component in making blenders, rises?
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3. Supply and Demand
Shifting Supply
Multiple Choice
What happens in the market for beef jerky if new companies start launching new beef jerky product lines?
A
Demand shifts to the left
B
Demand shifts to the right
C
Supply shifts to the left
D
Supply shifts to the right
E
Quantity demanded increases
Verified step by step guidance1
Step 1: Identify the market in question, which is the market for beef jerky products.
Step 2: Understand that when new companies launch new beef jerky product lines, the total quantity of beef jerky supplied to the market increases because more producers are offering the product.
Step 3: Recognize that an increase in the number of producers or product lines causes the supply curve to shift to the right, indicating an increase in supply at every price level.
Step 4: Note that this change affects the supply side of the market, not the demand side, so the demand curve remains unchanged.
Step 5: Conclude that the correct effect is a rightward shift in the supply curve, meaning supply increases, which typically leads to a lower equilibrium price and a higher quantity sold.
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