Summary Questions (contd.)

 

 

 

 

2.   This question relates to the supply of tea – match each situation with the appropriate statement relating to supply (contd.)

 

 

c) A new, more efficient machine is developed for processing tea

 

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


 

 

d) Global pressure leads to an increase in the level of wages paid top tea pickers

 

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