The correct answer is - B) the supply curve will shift to the right.
If the government decides to subsidize the production of bobble-head dolls, than the production of these dolls will increase. The reason for the increased production will be that part of the expenses for the production are paid by the government, not the company that produces them, thus the company will try to benefit of this measure by producing more. The increase in the production means that the supply on the market will also experience an increase, thus making the supply curve go towards the right side.
The correct answer is the option, B. If the government decided to subsidize the production of bobble-head dolls, the supply curve will shift to the right.
EXPLANATION:
The explanation for the increased production will be that the government will pay part of the production costs, not the company that produces them, so by producing more, the company will try to benefit from this initiative. The increase in production means that there will also be an increase in supply on the market, resulting in the supply curve going to the right side.
The rule of demand states is that the higher the price of a good, the fewer people will demand the good, in condition if all other factors remain the same. In other words, the higher the value, the lower the demand for the quantity. The value of a good bought by consumers at a higher price is less because as a good's price rises, so is the opportunity cost of purchasing the product. As a consequence, people will naturally avoid buying a product that will cause them to forget about eating something else that they value more.
The supply law reveals the amounts to be sold at a given price. Yet contrary to the law of demand, there is an upward trend in the supply relationship. That means the higher the price, the higher the supplied quantity. The producers will supply more at a higher price because selling an advanced quantity at an advanced price will likely increase the revenue.
LEARN MORE:
If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:
1. Describe the effect of each action below will have on the money supply. Explain your reasoning https://brainly.com/question/9390001
2. What was two working conditions that labor unions opposed? What was a demand made by labor unions to change the working condition? https://brainly.com/question/2272057
KEYWORDS: supply and demand, supply, demand
Subject:History
Class: 7-9
Sub-chapter: Supply and demand
