Arrange the following factors that can cause a rightward shift in the supply curve in the correct order: A) Decrease in production costs, B) Introduction of new technology, C) Government subsidies, D) Increase in producer expectations.

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Seekh · Accepted Answer

A decrease in production costs (A) and the introduction of new technology (B) both lower the cost of making goods, so they are the strongest drivers of a rightward shift. Government subsidies (C) also lower costs, but usually to a lesser extent than a technological breakthrough. Finally, an increase in producer expectations (D) can prompt firms to supply more, but it is the weakest of the four factors. Thus the correct order from most to least influential is B, A, C, D.

Arrange the following factors that can cause a rightward shift in the supply curve in the correct order: A) Decrease in production costs, B) Introduction of new technology, C) Government subsidies, D) Increase in producer expectations.

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