Exhibit 3-5

-Refer to Exhibit 3-5.In the market shown,a rightward shift in supply from S? to S? could have been caused by

Question

Exhibit 3-5
 
-Refer to Exhibit 3-5.In the market shown,a rightward shift in supply from S? to S? could have been caused by

Quizplus · Accepted Answer

A rightward shift in supply indicates an increase in supply. This increase could be caused by something that makes it more profitable for producers to produce, such as a subsidy. Therefore, the granting of a subsidy to the producer would likely cause a rightward shift in supply. None of the other options provided would necessarily lead to an increase in supply.

Exhibit 3-5 -Refer to Exhibit 3-5.In the Market Shown,a Rightward Shift in Shown,a