Summary Questions (contd.)

 

 

 

 

2.   This question relates to the supply of tea – match each situation with the appropriate statement relating to supply. Continued on following pages…

 

 

a) The government subsidizes tea producers

 

1: There is a movement along the supply curve, and the quantity supplied will increase

2: There is a movement along the supply curve, and the quantity demanded will decrease

3: The supply curve shifts to the right and more is supplied at each price

4: The supply curve shifts to the left and less is supplied at each price


 

 

b) There is a very poor tea harvest

 

1: There is a movement along the supply curve, and the quantity supplied will increase

2: There is a movement along the supply curve, and the quantity demanded will decrease

3: The supply curve shifts to the right and more is supplied at each price

4: The supply curve shifts to the left and less is supplied at each price