Which of the following shifts the short-run supply curve to the right?
A)An increase in the price level
B)An increase in the minimum wages
C)A decrease in the price of oil
D)All of these responses are correct.

Question

Quizplus · Accepted Answer

A decrease in the price of oil reduces the cost of inputs for many firms, which increases their profit margins and incentivizes them to expand production. This results in a rightward shift of the short-run supply curve. An increase in the price level or an increase in minimum wages would both lead to a decrease in short-run supply, so choices A and B are incorrect.

Which of the Following Shifts the Short-Run Supply Curve to the Right