Among the five choices, the most plausible cause on a rightward shift of a market supply curve would be:
c. the entry of new firms in the industry
The entry of new firms would result in the introduction of additional supply of products on the market. This would result in an increase in supply without change in price.
A rightward shift of a market supply curve might be caused by: e. an increase in the supply of a substitute good.
Changes in production cost and related factors can cause an entire supply curve to shift right or left and this causes a higher or lower quantity to be supplied at a given price.
The supply curve can shift positions. If the supply curve shifts to the right, there is an increase in supply; more is provided for sale at each price. Whereas if the supply curve moves inwards, there is a decrease in supply meaning that less will be supplied at each price. Make sure that you understand the key factors that can bring about a shift in the supply curve for a product in a market.
A leftward shift of a product supply curve might be caused by some firms leaving an industry. Whereas a rightward shift in the demand curve for product c might be caused by a decrease in the price of a product that is complementary to c.
Grade: 9
Subject: business
Chapter: a market supply curve
Keywords: new firms in the industry, a market supply, the income of consumers, the supply of a substitute good, the wages of labor
