Question

A rightwardrightward shift in the supply curve for a good may be caused by any of the following except

A. an improvement in technology.an improvement in technology.
B. a rise in the price of an input to production.a rise in the price of an input to production.
C. an increase in price.an increase in price.
D. an increase in the per unit subsidy.

Answer 1

Answer:

Answer is Option C i.e. an increase in price.

Explanation:

When the increase in price is more than the marginal cost of production, it creates more profit for the firm by selling the products at higher prices. This causes an increase in the supply of the product and therefore, the supply curve shows a shift towards the right.