Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Decrease in production costs due to new technology
B
Increase in consumer demand for smartphones
C
Implementation of higher taxes on smartphone manufacturers
D
Anticipation of future price increases in smartphones
Understanding the Answer
Let's break down why this is correct
Answer
A rightward shift of the smartphone supply curve happens when it becomes cheaper or easier to produce more phones at every price. For example, if a new manufacturing technique reduces the cost of the chips used in phones, producers can make more units for the same price. When the cost per phone drops, companies supply more phones at each price level, moving the supply curve to the right. This shift is driven by lower input costs or improved production technology. So, a decrease in the price of a key component, like the smartphone processor, would likely cause that rightward shift.
Detailed Explanation
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
Supply Curve Shift
Production Costs
Consumer Demand
Topic
Shifts in Supply Curve
Difficulty
medium 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 2Which of the following scenarios would most likely cause a rightward shift in the supply curve for smartphones?
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Question 3Which of the following factors can cause a shift in the demand curve for a product? Select all that apply.
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Question 4Which of the following factors would cause a rightward shift in the demand curve for a luxury car?
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Question 5Which of the following factors can cause a shift in the supply curve for a product? Select all that apply.
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Question 6In what scenario would the supply curve for electric cars shift to the right?
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Question 7Arrange 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 8If the supply curve for electric cars shifts to the right, what is the most likely underlying cause for this change?
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