Figure 2.7

-Refer to Figure 2.7. Assume that D₁ and S₁ are the initial curves. The shift in supply to S₂ could have been the result of each of the following except

Question

Figure 2.7 -Refer to Figure 2.7. Assume that D₁ and S₁ are the initial curves. The shift in supply to S₂ could have been the result of each of the following except

Quizplus · Accepted Answer

A shift in the supply curve to the right (from S₁ to S₂) indicates an increase in supply. This can be caused by factors such as technological improvements (A), optimistic producer expectations (B), an increase in the number of producers (C), and greater productivity (E), all of which make production more efficient or increase the willingness or ability to produce more. However, higher resource costs (D) would typically decrease supply, not increase it, as it makes production more expensive.

Figure 2.7 -Refer to Figure 2.7. Assume That D1 and S1 Are

Figure 2.7 -Refer to Figure 2.7. Assume That D₁ and S₁ Are