Figure 4-10Refer to Figure 4-10. Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time?

Question

BlackTom AI · Accepted Answer

The question asks which movement would illustrate the effect of an improved high-speed mixer that lets bakers produce cookies in less time. An improvement of this kind increases the market's supply: producers can supply more at every price, so the supply curve shifts to the right (from S1 to S2 in the diagram). Now, how does this appear as a movement on the graph? When the supply curve shifts right, the market price tends to fall and the quantity traded tends to rise. On a standard supply-demand diagram, this change is reflected as a movement along the original demand curve from a higher price/lower quantity point to a lower price/higher quantity point, or equivalently as the new equilibrium moving downward along the price axis while the quantity axis increases.

Option analysis:
- The movement from Point A to Point B represents a transition that aligns with a rightward shift of the supply curve, i.e., an increase in supply. This corresponds to a lower equilibrium price and higher equilibrium quantity, which is the expected outcome when bakers can produce cookies faster due to the improved mixer.
- If there were other options (not shown here), we would compare each to the effect of an increased supply. For example, a shift of supply to the left would raise price and lower quantity, which would be inconsistent with an efficiency improvement in production. A movement along a demand curve alone without any supply shift would not capture the full impact of a production-technology improvement in the short run. A shift in the opposite direction (diminished supply) would be incorrect.

In summary, the change described (better production efficiency) is best illustrated by the movement from A to B, which corresponds to the market responding to a higher supply by lowering price and increasing quantity.

ECB1101 - S1 2025 Online Quiz 3

Figure 4-10Refer to Figure 4-10. Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time?

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ECB1101 - S1 2025 Online Quiz 3

Figure 4-10Refer to Figure 4-10. Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time?

查看解析

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类似问题

Price decreases for a product are most likely to occur when

Assume that a competitive industry producing a normal good is in long-run equilibrium. If average consumer income decreases, which of the following changes will occur?

Which of the following describes how a market will respond when the scarcity of a good increases?

Assume that consumers consider popcorn and pretzels to be substitutes. A significant decrease in the supply of popcorn will affect the pretzel market by

In the coffee market, which of the following changes will increase the price and decrease the quantity of coffee?

At an initial equilibrium, demand curve shifts to the left, supply curve remain unchanged. This creates ______________ and prices will _______________ restore the market equilibrium.

At an initial equilibrium, supply curve shifts to the left, demand curve remain unchanged. This creates ______________ and prices will _______________ restore the market equilibrium.

Due to the Covid-19 Pandemic, the demand for face masks and sanitizers have greatly increased which also increased the price for these products by 50%. Which of the following statements is true?

更多留学生实用工具

希望你的学习变得更简单

At an initial equilibrium, demand curve shifts to the left, supply curve remain unchanged. This creates and prices will _ restore the market equilibrium.

At an initial equilibrium, supply curve shifts to the left, demand curve remain unchanged. This creates and prices will _ restore the market equilibrium.