Question: ( 0 1 . 0 5 HC ) Graph shows an upward - sloping line labeled S 1 . Another upward - sloping line, labeled
HC
Graph shows an upwardsloping line labeled S Another upwardsloping line, labeled S appears to the left of S A third upwardsloping line, labeled S appears to the right of S
Which of the following could explain the sequence shown above?
Question Select one:
a
Suppliers expect demand for Z is about to go up and then learn that they are wrong.
b
Suppliers shift to the production of another good instead of Z and then consumer tastes shift toward a greater preference for Z
d
Suppliers raise the price for Z and then realize they overestimated demand and lower the price much more.
e
Suppliers lose a subsidy that the government had been giving, and then the cost of an input for Z decreases by more than the value of the subsidy.
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