FIGURE 3- 2
-Refer to Figure 3- 2. A shift of the supply curve for energy- efficient light bulbs from S to S2 could be caused by

Question

Quizplus · Accepted Answer

The shift of the supply curve from S to S2 indicates a decrease in the quantity supplied at all possible prices. This could be caused by a decrease in government subsidies to suppliers of energy-efficient light bulbs, which would increase the cost of production and cause a decrease in supply. A change in preferences toward energy-efficient light bulbs, an increase in the number of suppliers, a decrease in the price of energy-efficient light bulbs, or an increase in the price of energy-efficient light bulbs would not necessarily cause a shift in the supply curve.

FIGURE 3- 2 -Refer to Figure 3- 2. a Shift of the Supply