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

Question

Quizplus · Accepted Answer

A decrease in the price of an input used to produce music streaming apps would decrease the cost of production for firms, allowing them to produce more music streaming apps at any given price level, thus shifting the supply curve to the right. A increase in the price of a substitute in production (A) would increase the cost of production for firms, leading to a decrease in supply. An increase in consumer income (B) would increase demand for music streaming apps, but it would not affect the supply curve. A decrease in the number of firms that produce music streaming apps (C) would decrease the supply of music streaming apps, shifting the supply curve to the left.

Which of the Following Would Shift the Supply Curve for Music