Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increase in production costs
B
Improvement in technology
C
Increase in consumer demand
D
Government subsidies to producers
E
Seasonal changes in consumer preferences
Understanding the Answer
Let's break down why this is correct
Answer
A supply curve moves when something about the cost or ability to produce changes. If the price of a key input rises, farmers can’t produce as much for the same price, so the supply curve shifts to the left; if technology improves, they can produce more for the same cost, shifting right. Taxes on production or subsidies from the government also shift the curve, as do changes in the number of sellers or in expectations about future prices. For example, if a new machine lets a factory make widgets faster, the supply curve moves right because more widgets can be supplied at every price.
Detailed Explanation
An increase in production costs makes it more expensive to make goods, so producers supply less, moving the curve inward. Other options are incorrect because A rise in consumer demand changes the demand curve, not supply; Seasonal changes in taste affect how many people want the product, shifting demand, not supply.
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
1
Question 1Which of the following events would most likely cause a rightward shift in the demand curve for a normal good?
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Question 2How does an increase in consumer income typically affect the demand curve for normal goods, and what is the underlying reason for this shift?
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Question 3Which of the following scenarios would most likely cause a rightward shift in the supply curve for smartphones?
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Question 4Which of the following factors can cause a shift in the demand curve for a product? Select all that apply.
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Question 5Which of the following factors would cause a rightward shift in the demand curve for a luxury car?
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Question 6Arrange 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.
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Question 7When 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.
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Question 8Arrange 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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Question 9If the supply curve for electric cars shifts to the right, what is the most likely underlying cause for this change?
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Question 10Which of the following factors would likely cause a rightward shift in the supply curve for smartphones?
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