Learning Path
Question & Answer
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Decrease in production costs due to new technology
Increase in consumer demand for smartphones
Implementation of higher taxes on smartphone manufacturers
Anticipation of future price increases in smartphones
Understanding the Answer
Let's break down why this is correct
When new tools make phones cheaper to make, factories can produce more at each price. Other options are incorrect because More buyers want phones, but that changes the demand curve, not supply; Higher taxes add cost to making phones, so factories produce less.
Key Concepts
Shifts in Supply Curve
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Deep Dive: Shifts in Supply Curve
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Definition
Shifts in the supply curve occur when factors other than price influence the quantity of a product supplied at each price level. Changes in production costs, technology, government policies, and expectations can shift the supply curve either outward (increase in supply) or inward (decrease in supply).
Topic Definition
Shifts in the supply curve occur when factors other than price influence the quantity of a product supplied at each price level. Changes in production costs, technology, government policies, and expectations can shift the supply curve either outward (increase in supply) or inward (decrease in supply).
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