Multiple Choice
Which of the following would most likely cause the market supply curve for a good to shift to the right (increase in supply), holding everything else constant?
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3. The Market Forces of Supply and Demand
Shifts in the Supply Curve
Multiple Choice
Which of the following is a non-price determinant of supply that would shift the supply curve for a good?
A
A movement along the supply curve caused by a change in quantity supplied
B
A change in the price of a key input used to produce the good
C
A change in the price of the good itself
D
A change in the market demand for the good
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 itself changes, affecting the quantity supplied.
Identify what causes a shift in the supply curve. A shift occurs when a non-price determinant of supply changes, meaning factors other than the good's own price affect supply.
List common non-price determinants of supply, such as changes in input prices, technology, number of sellers, expectations, and government policies.
Analyze each option: a change in the price of the good itself causes movement along the curve, not a shift; a change in market demand affects demand, not supply; a change in the price of a key input affects production costs and thus shifts the supply curve.
Conclude that the correct non-price determinant of supply that shifts the supply curve is a change in the price of a key input used to produce the good.
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