Which of the following will shift the short-run industry supply curve of a perfectly competitive industry?
A) a decrease in the price of an input
B) an increase in consumer income
C) an increase in the price of the product
D) an increase in demand for the product

Question

Quizplus · Accepted Answer

A decrease in the price of an input reduces production costs for all firms in the industry, encouraging them to increase output at any given price level, which shifts the short-run industry supply curve to the right.

Which of the Following Will Shift the Short-Run Industry Supply