Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A decrease in the price of raw materials used to manufacture smartphones
B
A new tax imposed on smartphone manufacturers
C
A rise in consumer income leading to increased demand for smartphones
D
A technological advancement that reduces production costs for smartphones
Understanding the Answer
Let's break down why this is correct
Answer
A rightward shift in the smartphone supply curve happens when it becomes cheaper or easier to produce more phones at each price. For example, if a new, inexpensive chip is invented that cuts manufacturing costs, producers can make more phones for the same price, so supply rises. This is a supply-side change, not a price change, and it moves the entire curve to the right. Thus, a scenario where a cost‑reducing technology or a drop in component prices occurs would most likely cause the shift.
Detailed Explanation
When the price of the materials that make phones falls, each factory can make phones for less money. Other options are incorrect because Adding a tax raises the cost for makers, so they would supply less, not more; Higher income makes people want more phones, but that changes demand, not how many phones firms are ready to sell.
Key Concepts
real-world examples of supply shifts
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 2Which of the following factors would cause a rightward shift in the demand curve for a luxury car?
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Question 3Which of the following factors can cause a shift in the supply curve for a product? Select all that apply.
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Question 4In what scenario would the supply curve for electric cars shift to the right?
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Question 5Arrange 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 6If 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 7Which of the following factors would likely cause a rightward shift in the supply curve for smartphones?
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