178k views
2 votes
The availability of raw materials is an example of which of the following forces affecting the economy?

a) Political factors
b) External shocks
c) Market competition
d) Monetary policy

1 Answer

3 votes

Final answer:

The availability of raw materials affects the supply side of the market, causing a shift in the supply curve. This is not linked to political factors, external shocks, market competition, or monetary policy, but to the production capability and quantity of goods available for the market.

Step-by-step explanation:

The availability of raw materials is an example of factors that cause a shift in the supply curve in markets for goods and services. It is neither a political factor, external shock, result of market competition, nor a product of monetary policy. Rather, it directly impacts the economic supply factor by affecting the quantity of goods that can be produced. For example, good weather can improve the availability of agricultural raw materials, which increases supply. Similarly, a discovery of new sources of raw materials can increase the supply of products that depend on those materials.Factors that can cause a shift in the supply curve can be related to production costs, technological innovations, number of sellers, and expectations for future prices, among others. These components are all part of the production process and affect how much of a product can be made available in the market at a given price. Generally, better availability or cost-efficiency in raw materials will shift the supply curve to the right, indicating an increase in supply.

User Thordarson
by
8.4k points