Question : What is the best possible explanation for a shift in the market supply curve for a product?
Option 1: Price increases in raw materials
Option 2: Introduction of a government tax on that product.
Option 3: Introduction of a new technique that makes the production of that commodity less expensive.
Option 4: A successful advertising campaign that promotes the product.
Correct Answer: Introduction of a new technique that makes the production of that commodity less expensive.
Solution : A new technique that makes it cheaper to produce the goods best explains a shift to the right in the market supply curve. A shift to the right in the supply curve, such as from new manufacturing technology, results in a lower equilibrium price and a higher quantity. Hence option c is the correct answer.
Option 1: An advertising campaign that is successful in promoting the product
Option 2: Introduction of a tax on that product by the government
Option 3: Increase in the price of raw materials
Option 4: Introduction of a new technique that makes the production of that commodity cheaper
Question : Which of the following is an example of a market research method?
Option 1: Product pricing
Option 2: Sales forecasting
Option 3: Customer surveys
Option 4: Advertising campaign development
Question : Which of the following is an example of a marketing channel?
Option 1: Product design
Option 2: Pricing strategy
Option 3: Advertising campaign
Option 4: Distribution network
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile