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

Question

Quizplus · Accepted Answer

A decrease in the price of an input used to produce smartphones would lower the cost of production and incentivize firms to produce more smartphones at any given price, shifting the supply curve to the right. An increase in the price of a substitute in production (A) would decrease the supply of smartphones, while an increase in consumer income (B) would likely increase demand for smartphones, but not necessarily shift the supply curve. A decrease in the number of firms that produce smartphones (C) would decrease the supply of smartphones as well.

Which of the Following Would Shift the Supply Curve for Smartphones