An increase in supply is shown by:
A) a rightward shift of the supply curve.
B) a movement up along the supply curve.
C) an initial movement up and then down along the same supply curve.
D) a leftward shift of the supply curve.
E) a movement down along the supply curve.
Supply is one of the main concepts in Economics, along with demand. It describes the amount of a given good or service that producers are willing and able to create and provide to consumers.
Answer and Explanation:
The answer is A) a rightward shift of the supply curve.
The supply curve is an upright curve representing the quantity supplied for different levels of price. An increase in the supply that is not caused by the increase in the price is shown by the rightward shift of the supply curve. The factors that affect the supply in such a way are, for instance, the improvement of technology used in production, and the decrease in the prices of raw materials. If the increase in the supply is the consequence of the price change, then the result is the movement up along the supply curve.
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fromChapter 3 / Lesson 8
You will be introduced to one of the main concepts in economics: supply. Have you ever considered how a producer determines how much of a product to supply? Learn what factors change the supply and how suppliers react to changes in market price.