32. the supply curve represents the ___ price at which a firm is willing to ___ a. maximum; pay for inputs…

32. the supply curve represents the ___ price at which a firm is willing to ___ a. maximum; pay for inputs b. maximum; sell various quantities of a good c. minimum; sell various quantities of a good d. minimum; pay for inputs 33. if the equilibrium price of lychee fruit has fallen while the equilibrium quantity has risen, which factor may have caused it? a. a reduction in the price of related commodities using the same type of land for production b. an increase in the price of rambutan fruit, a substitute for lychee fruit c. a severe drought that caused many sellers to leave the market d. a rise in popularity in the consumption of lychee fruit

32. the supply curve represents the ___ price at which a firm is willing to ___ a. maximum; pay for inputs b. maximum; sell various quantities of a good c. minimum; sell various quantities of a good d. minimum; pay for inputs 33. if the equilibrium price of lychee fruit has fallen while the equilibrium quantity has risen, which factor may have caused it? a. a reduction in the price of related commodities using the same type of land for production b. an increase in the price of rambutan fruit, a substitute for lychee fruit c. a severe drought that caused many sellers to leave the market d. a rise in popularity in the consumption of lychee fruit

Answer

Brief Explanations:

  • Question 32: The supply - curve shows the minimum price at which a firm is willing to sell various quantities of a good. Firms aim to cover their costs and make a profit, so they have a minimum acceptable price for each quantity they supply.
  • Question 33: A reduction in the price of related commodities using the same type of land for production would lead to producers shifting resources to the production of lychee fruit. This increases the supply of lychee fruit, causing the equilibrium price to fall and the equilibrium quantity to rise. An increase in the price of a substitute (rambutan) would increase the demand for lychee, raising the price. A drought would decrease supply, raising price and reducing quantity. A rise in popularity (increase in demand) would raise the price.

Answer:

    1. C. minimum; sell various quantities of a good
    1. A. a reduction in the price of related commodities using the same type of land for production