A rightward shift of a market supply curve might be caused by:

Question

Quizplus · Accepted Answer

The entry of new firms in the industry increases the total quantity of the good or service supplied, causing a rightward shift of the market supply curve. Choice B is incorrect because an increase in wages would increase the cost of production and shift the supply curve leftward. Choice C is incorrect because an increase in the price of the final product would increase the producer's revenue and might lead to an increase in production, but it would not cause a shift of the supply curve. Choice D is incorrect because a decrease in the income of consumers would decrease the total demand for the good or service, not the supply. Choice E is incorrect because an increase in the price of a substitute good would not directly affect the supply of the considered good or service.

A Rightward Shift of a Market Supply Curve Might Be