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

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The fact that the supply curve has shifted to the right (from S₁ to S₂) indicates that suppliers are now able to produce and offer more of the good at any given price. This increase in supply could be due to the adoption of more efficient machinery or technology, which would lower the costs of production and thereby increase the quantity of the good that suppliers would be willing and able to offer. None of the other options (an increase in wages for workers, a decrease in fashionability, or an increase in consumer incomes) would directly affect the costs of production and supply in the same way.

Refer to the Above Diagram, in Which S1 and D1

Refer to the Above Diagram, in Which S₁ and D₁