216k views
5 votes
What dictates the movement of the supply curve on a supply and demand graph of the AUD?

a) Changes in consumer preferences
b) Government regulations
c) Fluctuations in exchange rates
d) Technological advancements

1 Answer

3 votes

Final answer:

Various factors dictate the movement of the supply curve on a supply and demand graph of the AUD, including changes in consumer preferences, government regulations, fluctuations in exchange rates, and technological advancements.

Step-by-step explanation:

The movement of the supply curve on a supply and demand graph of the AUD is dictated by various factors, including changes in consumer preferences, government regulations, fluctuations in exchange rates, and technological advancements.

Changes in consumer preferences can impact the demand for goods and services, which in turn affects the supply curve. For example, if consumers start preferring imported goods to domestic goods, the supply of domestic goods will decrease, shifting the supply curve to the left.

Government regulations can also influence the supply curve. For instance, the government may impose regulations that restrict imports or exports, thereby affecting the availability of goods and services and leading to a shift in the supply curve.

Fluctuations in exchange rates can impact the supply curve as well. A change in the exchange rate of the AUD can make imports cheaper or more expensive, which can affect the supply of imported goods and services and lead to a shift in the supply curve.

Furthermore, technological advancements can impact the supply curve by increasing the efficiency of production and reducing costs. For example, if a new technology is developed that allows for faster and cheaper production of goods, the supply curve may shift to the right.

User Jconlin
by
8.2k points