Multiple Choice
Which of the following would cause the market supply curve for coffee to shift to the right (increase in supply) rather than a movement along the existing 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 is NOT a determinant of supply (i.e., would NOT shift the supply curve)?
A
Number of sellers in the market
B
Technology that makes production more efficient
C
A change in the price of the good itself
D
Input prices (e.g., wages or raw material costs)
Verified step by step guidance1
Understand that a determinant of supply is a factor that causes the entire supply curve to shift either to the right (increase in supply) or to the left (decrease in supply).
Recall that the price of the good itself does NOT shift the supply curve; instead, it causes a movement along the supply curve, known as a change in quantity supplied.
Identify the common determinants of supply, which include: number of sellers in the market, technology improvements, input prices (like wages or raw materials), expectations about future prices, and government policies such as taxes or subsidies.
Analyze each option: 'Number of sellers in the market' affects supply by changing the total quantity supplied at every price, so it shifts the supply curve.
Recognize that 'Technology that makes production more efficient' and 'Input prices' also shift the supply curve by changing production costs, while 'A change in the price of the good itself' only causes movement along the curve, not a shift.
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