Which of the following will cause an outward (rightward) shift in the supply curve?
A) A reduction in the price of the good
B) An increase in the price of labor input
C) An increase in the number of consumers
D) Technological progress

Question

Quizplus · Accepted Answer

Technological progress will cause an outward (rightward) shift in the supply curve as it reduces the cost of production and increases the quantity of the good that can be supplied at each price level. A reduction in the price of the good (choice A) will result in a movement along the supply curve, not a shift. An increase in the price of labor input (choice B) will increase the cost of production, leading to a leftward shift in the supply curve. An increase in the number of consumers (choice C) will increase the demand for the good, resulting in a movement along the supply curve.

Which of the Following Will Cause an Outward (Rightward) Shift