Question at position 7 A leftward shift of the supply curve for computers could be caused by which of the following in the short run? 4MA16A decrease in the price of components used to assemble computers A decrease in the price of computers A decrease in the number of computer manufacturers An increase in the price of mobile devices, a substitute good A decease in taxes on computer manufacturers

Question

Question at position 7 A leftward shift of the supply curve for computers could be caused by which of the following in the short run? 4MA16A decrease in the price of components used to assemble computers A decrease in the price of computers A decrease in the number of computer manufacturers An increase in the price of mobile devices, a substitute good A decease in taxes on computer manufacturers

BlackTom AI · Accepted Answer

A leftward shift of the supply curve means a decrease in market supply at every price — producers supply less at each possible price. Key concepts: determinants of supply (input costs, number of sellers, technology, taxes/subsidies, expectations), difference between a movement along the supply curve (caused by a change in the good’s own price) and a shift of the supply curve (caused by changes in non-price determinants).

Step-by-step reasoning through each option:
1) A decrease in the price of components used to assemble computers: lower input costs reduce producers’ costs and increase willingness to supply at every price, shifting the supply curve right (an increase in supply), not left. So this is incorrect.
2) A decrease in the price of computers: this is a change in the good’s own price and causes movement down along the supply curve (a lower quantity supplied), not a shift of the supply curve itself. Incorrect for causing a leftward shift.
3) A decrease in the number of computer manufacturers: fewer firms in the market reduces total industry output at every price. That directly reduces market supply, shifting the supply curve left (a decrease in supply). This is exactly the condition that causes a leftward shift.
4) An increase in the price of mobile devices, a substitute good: if mobile devices are substitutes in consumption, higher mobile-device prices raise demand for computers (demand curve shifts right), which changes equilibrium quantity and price but does not shift the supply curve. Incorrect.
5) A decrease in taxes on computer manufacturers: lower taxes lower producers’ costs and increase supply, shifting the supply curve right, not left. Incorrect.

Thus the only option that causes a leftward (decrease) shift in the short-run supply curve is a decrease in the number of computer manufacturers. This matches the provided correct answer: A decrease in the number of computer manufacturers.

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