Factors that could cause a supply curve to shift to the right include all of the following except:
A)a drop in the price of inputs to the supply process.
B)an increase in the number of firms in the industry.
C)an increase in demand for the product.
D)a technological innovation that makes it cheaper to produce the product.

Question

Quizplus · Accepted Answer

An increase in demand for the product would cause the demand curve to shift to the right, not the supply curve. A decrease in the price of inputs (option A), an increase in the number of firms in the industry (option B), and a technological innovation that makes production cheaper (option D) would all cause the supply curve to shift to the right. An increase in demand for the product would not cause a shift to the right in the supply curve, but rather a movement up and along the existing supply curve. Shifts in the supply curve are caused by changes in factors that affect production costs or output, such as changes in technology, input prices, or the number of firms in the industry.

Factors That Could Cause a Supply Curve to Shift to the Right