(Figure: Shift in Supply 1) Use the figure to answer the question.
Which of the following events would lead to a shift of the supply curve from Old supply to New supply?

Question

Quizplus · Accepted Answer

A technological advance in production techniques would lead to a shift in supply from Old supply to New supply, as producers would be able to produce more at each price level. A natural disaster that causes a shutdown of production would lead to a decrease in supply, shifting the supply curve to the left. Increased taxation of raw materials used by producers would increase their costs of production and decrease supply, shifting the supply curve to the left. A decrease in the size of the market would decrease demand and have no effect on supply.

(Figure: Shift in Supply 1) Use the Figure to Answer