A shift occurs in the supply curve for salt when:
A) the price of salt increases.
B) improvements are made in the production process.
C) salt is found to be associated with high blood pressure.
D) consumers expect the price of salt to increase in the future.

Question

Quizplus · Accepted Answer

Improvements in the production process would shift the supply curve for salt, increasing the quantity supplied at every price, and thus shifting the curve rightward. Increases in the price of salt (A) would result in a movement along the supply curve, not a shift in the curve itself, as quantity supplied would only change in response to the higher price. News about the health effects of salt (C) or consumer expectations of future price changes (D) would affect demand for salt, not supply.

A Shift Occurs in the Supply Curve for Salt When