Multiple Choice
Which of the following will cause a shift in the supply curve, rather than a movement along the supply curve?
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3. The Market Forces of Supply and Demand
Shifts in the Supply Curve
Multiple Choice
Which of the following scenarios would cause a shift in the supply curve for wheat?
A
A technological advancement in wheat harvesting equipment
B
An increase in the price of wheat
C
A change in consumer preferences for wheat products
D
A decrease in consumer demand for wheat
Verified step by step guidance1
Understand the difference between a movement along the supply curve and a shift of the supply curve. A movement along the supply curve happens when the price of the good changes, while a shift occurs when other factors affecting supply change.
Identify the factors that cause a supply curve to shift. These include changes in technology, input prices, number of sellers, expectations about future prices, and government policies.
Analyze each scenario: An increase in the price of wheat causes a movement along the supply curve, not a shift, because it changes the quantity supplied at different prices.
A change in consumer preferences or a decrease in consumer demand affects the demand curve, not the supply curve, so these do not cause a supply shift.
A technological advancement in wheat harvesting equipment improves production efficiency, reducing costs and increasing supply at every price level, which causes the supply curve to shift to the right.
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