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.

Learning Path

Question & Answer

Understand Question

Review Options

Learn Explanation

Explore Topic

Choose the Best Answer

A→B→C→D

B→A→C→D

C→B→A→D

D→C→B→A

Understanding the Answer

Let's break down why this is correct

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.

Detailed Explanation

New technology first makes factories work faster and cheaper. Other options are incorrect because Starting with lower costs assumes the cost drop happened before any change; Thinking subsidies come before technology mixes up cause and effect.

Key Concepts

Shifts in Supply Curve

Production Costs

Government Policies

Topic

Shifts in Supply Curve

Difficulty

easy level question

Cognitive Level

understand

Practice Similar Questions

Test your understanding with related questions

Question 1

Which of the following events would most likely cause a rightward shift in the demand curve for a normal good?

easyEconomics

Practice

Question 2

Which of the following scenarios would most likely cause a rightward shift in the supply curve for smartphones?

easyEconomics

Practice

Question 3

Which of the following factors can cause a shift in the demand curve for a product? Select all that apply.

easyEconomics

Practice

Question 4

Which of the following factors would cause a rightward shift in the demand curve for a luxury car?

easyEconomics

Practice

Question 5

Arrange the following factors that can shift the demand curve in the correct order of their impact on consumer demand: A) Change in consumer preferences, B) Change in income, C) Change in prices of related goods, D) Change in population size.

mediumEconomics

Practice

Question 6

Which of the following factors can cause a shift in the supply curve for a product? Select all that apply.

easyEconomics

Practice

Question 7

When the government imposes a tax on a product, this typically causes the supply curve to shift ______ due to increased production costs. Choose the best term to complete the statement.

hardEconomics

Practice

Question 8

If the supply curve for electric cars shifts to the right, what is the most likely underlying cause for this change?

mediumEconomics

Practice

Question 9

Which of the following factors would likely cause a rightward shift in the supply curve for smartphones?

mediumEconomics

Practice

View All Shifts-in-supply-curve Questions

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.

Start Learning with Seekh Explore More Shifts in Supply Curve Questions