Question

Consider the supply of avocados. Explain why a change in the price of fertilizer causes a shift in the supply curve for avocados rather than a movement along the supply curve for avocados. A change in the price of fertilizer causes a shift in the supply curve for avocados because

a. the price of avocados is held constant along a supply curve.
b. the price of fertilizer also shifts avocado demand.
c. the price of fertilizer changes for a given supply of avocados.
d. a change in the cost of inputs changes how much a producer will supply at any given price.
e. factors representing the cost of production do not affect avocado price

Answer 1

a change in the cost of inputs changes how much a producer will supply at a given price

Step-by-step explanation:

A change in the price of fertilizers would lead to a shift in the supply curve for avocados either to the left or the right and not a movement along the supply curve.

It is only a change in the price of avocado that leads to a movement along the supply curve.

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