Figure 3-11 In Figure 3-11, suppose D₁ and S₁ indicate initial conditions in the market for kitchen cabinets. Which of the following would tend to cause the supply curve to shift from S₁ to S₂?

Question

Quizplus · Accepted Answer

A decrease in the price of wood, a resource used to produce kitchen cabinets, would shift the supply curve to the right, from S₁ to S₂, indicating an increase in the quantity supplied at every price level. This is because lower input costs make it more profitable for firms to produce and supply kitchen cabinets. The other choices are unlikely to have a significant effect on the supply curve for kitchen cabinets.

Figure 3-11 in Figure 3-11, Suppose D1 and S1

Figure 3-11 in Figure 3-11, Suppose D₁ and S₁