Refer to the above diagram,in which S₁ and D₁ represent the original supply and demand curves and S₂ and D₂ the new curves.In this market the indicated shift in supply may have been caused by:

Question

Quizplus · Accepted Answer

The shift in supply from S₁ to S₂ indicates an increase in the quantity supplied at every given price. This could be due to the development of more efficient machinery for producing this good, as it allows producers to lower their costs of production and supply more of the good at each price level. The other options (A, C, and D) would not directly affect the supply of the good in this market.

Refer to the Above Diagram,in Which S1 and D1 Represent

Refer to the Above Diagram,in Which S₁ and D₁ Represent