Ceramic-tile manufacturers face a fall in the price of natural gas used to fire their kilns. At the same time, the market price of ceramic tiles falls.
Which statement correctly describes the effects of these two changes on the supply of ceramic tiles?
Cheaper natural gas shifts supply left, while the lower tile price moves producers up the supply curve
Cheaper natural gas shifts supply right, while the lower tile price causes a contraction of supply
The lower tile price shifts supply left, while cheaper natural gas causes an extension of supply
Cheaper natural gas shifts supply right, and the lower tile price has no effect on quantity supplied
81 exam-style questions on OCR GCSE Economics 2.3 Supply, covering 2.3.1 What is supply, 2.3.2 Draw a supply curve using data, 2.3.3 Explain a supply curve, 2.3.4 Shifts and movements of the supply curve, 2.3.5 Causes and consequences of supply changes, 2.3.6 Price elasticity of supply, 2.3.7 Draw supply curves of different elasticity, and 2.3.8 Importance of price elasticity of supply. Each one has a worked solution and a mark scheme showing where the marks go.