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An increase in quantity supplied of meat is likely caused by

a. a decrease in the price of an input used in the production of meat,
b.an increase in the production of meat.
c.a decrease in the price of meat.
d. an increase in the price of meat.

1 Answer

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Final answer:

An increase in the price of meat is what likely causes an increase in the quantity supplied, leading to an upward movement along the supply curve. A decrease in input costs would cause a rightward shift in the supply curve, representing a change in supply.

Step-by-step explanation:

An increase in quantity supplied of meat is likely caused by an increase in the price of meat. This is because, according to the law of supply, producers are willing to supply more of a good when the price increases, leading to an upward movement along the supply curve.

On the other hand, a decrease in the price of an input used in the production of meat, such as feed or machinery, can lead to a rightward shift in the supply curve, representing an increase in supply, not just in the quantity supplied at an existing price.

It's important to differentiate between a movement along a supply curve and a shift in the supply curve itself. A movement along the curve happens due to a change in the price of the good itself, while a shift in the supply curve indicates a change in supply due to external factors, such as technology improvements or input costs.

For example, if the cost of livestock feed decreases, this reduces the cost of production for farmers, enabling them to supply more meat at the same prices, thus shifting the supply curve to the right.

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