Refer to the above diagram, in which S₁ and D₁ represent the original supply and demand curves and S₂ and D₂ the new curves.In this market the indicated shift in supply may have been caused by:

Question

Quizplus · Accepted Answer

The shift in supply curve from S₁ to S₂ may have been caused by the development of more efficient machinery for producing the commodity. This would lead to lower production costs, leading to an increase in supply at every price level.

Refer to the Above Diagram, in Which S1 and D1

Refer to the Above Diagram, in Which S₁ and D₁