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 leads to an increase in productivity and efficiency, which reduces the cost of production and encourages firms to produce more. This, in turn, causes an outward shift in the supply curve, representing an increase in the quantity supplied at each price level. A reduction in the price of the good, an increase in the price of labor input, or an increase in the number of consumers would all lead to a movement along the supply curve but not necessarily a shift.

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