Paper 2 · Elasticity of Demand and Supply
Which of the following would increase the supply of a good?
Aa rise in the wages paid to the workers who produce it
Ban improvement in the technology used to produce it
Ca new tax charged on each unit that is produced
Da drought that destroys part of the season's crop
Explanation: Better technology raises the output obtained from a given quantity of inputs, so producers can offer more at every price and the supply curve shifts to the right. Higher wages, a tax on output and a poor harvest all raise costs or cut what is available, shifting supply to the left.
Derived from ZIMSEC Economics 4050/2 Paper 2, June 2023, Q1