From the list below select the variable that will cause the supply curve to shift:

7/8

From the list below, select the variable that will cause the demand curve to shift: O A. Technology and productivity O B. The number of firms in the market O C. The cost of raw materials O D. Consumer income

From the list below, select the variable that will cause the demand curve to shift: O A. Technology and productivity O B. The number of firms in the market O C. The cost of raw materials O D. Consumer income

Answer

7.

D. Consumer income

With increase in consumer income,
demand curve shifts to the right and vice versa.

8.

Inelastic

Elastic

Supply will not be changed quickly
in short run, thus it will behave in relatively inelastic manner.
But, in long run, all factors of production are variable, thus
supply can be more responsive or elastic to the change in prices or
other factors.