Question

1. Which of the following may shift the supply curve to the left?

more firms entering the market

Income of consumers

cost of labor in a foreign country where a product is manufactured

none of the above

1. Economic surplus is

		demand price less equilibrium price
		supply price above market price
		consumer's surplus plus producer's surplus
		none of the above

Answer 1

If there are more firms entering the market, production increases and this means that the supply curve will shift to the right. If the income of the consumer changes there will be a change in the demand and not in the supply. However when cost of labour changes where the product is manufactured, it can shift the supply curve by changing the quantity supplied. Select third option

Economic surplus is the sum of surplus of consumer and surplus of producer which is also known as societal surplus. Select third option