Figure 4-15
-Refer to Figure 4-15.Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for beer?

Question

Figure 4-15 
-Refer to Figure 4-15.Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for beer?

Quizplus · Accepted Answer

A decrease in the price of hops (an input in the production of beer) would lower the cost of production for firms, causing them to supply more beer at every price level. This would shift the supply curve from Supply B to Supply A, representing an increase in the quantity supplied at every price. A decrease in the price of beer (Option A) would actually result in a movement along the supply curve, not a shift. Options B and D would not have a direct impact on the supply of beer, as they relate to future price expectations and technological improvements, respectively.

Figure 4-15 -Refer to Figure 4-15.Which of the Following Would Cause the Would