Which of the following would shift the supply curve for MP3 players to the right?
A)an increase in the price of a substitute in production
B)an increase in consumer income (assuming that all MP3 players are normal goods)
C)a decrease in the number of firms that produce MP3 players
D)a decrease in the price of an input used to produce MP3 players

Question

Quizplus · Accepted Answer

A decrease in the price of an input used to produce MP3 players would lower the cost of production for firms, leading to an increase in supply and a rightward shift of the supply curve. Choices A and B are more likely to impact demand for MP3 players, while choice C would decrease supply and shift the curve to the left.

Which of the Following Would Shift the Supply Curve for MP3