[amp_mcq option1=”Surely shift leftward” option2=”Surely become steeper” option3=”Shift either leftward or rightward” option4=”Surely shift rightward” correct=”option3″]<\/p>\n
The correct answer is: C. Shift either leftward or rightward<\/strong>.<\/p>\n The supply curve of Easy Day will shift either leftward or rightward, depending on which of the two effects is stronger: the decrease in the wage rate or the increase in the price of raw materials.<\/p>\n If the decrease in the wage rate has a stronger effect, then the supply curve will shift rightward, as producers will be able to produce Easy Day at a lower cost and will therefore be willing to supply more of it.<\/p>\n If the increase in the price of raw materials has a stronger effect, then the supply curve will shift leftward, as producers will be able to produce Easy Day at a higher cost and will therefore be willing to supply less of it.<\/p>\n In the absence of more information, it is impossible to say which effect will be stronger and therefore which way the supply curve will shift.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Surely shift leftward” option2=”Surely become steeper” option3=”Shift either leftward or rightward” option4=”Surely shift rightward” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-52616","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n