In general, any ceteris paribus determinant of supply that is favorable to production will
A) cause a movement along the supply curve.
B) shift the supply curve to the right.
C) shift the demand curve to the left.
D) shift the supply curve to the left.

Question

Quizplus · Accepted Answer

If a ceteris paribus determinant of supply is favorable to production, it means that producers are willing and able to supply more at each price. This will shift the supply curve to the right because there is an increase in the quantity of the good supplied at all possible prices. Therefore, B is the correct choice.

In General, Any Ceteris Paribus Determinant of Supply That Is