AP Microeconomics

Category - Microeconomics

Which of the following would be a main reason for a general shift in supply?
  1. Supplier expectations
  2. The number of suppliers
  3. Costs of the resources used
  4. All of the above
Explanation
Answer - D - All of the above are main reasons for a general shift in supply.

Key Takeaway: The easiest way to remember all of the many major things that could cause a change in the supply is to use the acronym ROTTEN:

R = Resources = costs of resources
O = Other = prices of other goods
T = Taxes = subsidies and taxes
T = Technology = changes and progress in technology
E = expectations = suppliers’ expectations
N = number = the number of suppliers involved
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