Exhibit 4.5

-Exhibit 4.5 shows the supply curves of a non-durable good. A shift from the supply curve S to S' could be caused by _____

Question

Exhibit 4.5
 
-Exhibit 4.5 shows the supply curves of a non-durable good. A shift from the supply curve S to S' could be caused by _____

Quizplus · Accepted Answer

A shift from the supply curve S to S' could be caused by an expectation of a higher product price in the future among suppliers. This would lead to an increase in supply in the current period, as suppliers try to take advantage of the expected higher prices in the future. None of the other options listed would lead to a shift in the supply curve.

Exhibit 4.5 -Exhibit 4.5 Shows the Supply Curves of a Non-Durable Good