Supply shifts when:

Question

Supply shifts when:

Quizplus · Accepted Answer

Production costs can affect the supply of a product. If the cost of producing a product increases, the supply of the product may decrease as it becomes less profitable for producers to make the product. On the other hand, if the production costs decrease, the supply may increase as producers are now able to make more profit from producing the product. Changes in consumers' income and tastes and preferences may affect the demand for a product but do not directly impact the supply. Therefore, options B and C are incorrect. Option D is incorrect as it suggests that there is no factor that can shift the supply curve, which is not true.

Supply Shifts When