Question

When quantity supplied increases at every possible price, we know that the supply curve has a. shifted to the left. b. shifted to the right. c. not shifted; rather, we have moved along the supply curve to a new point on the same curve. d. not shifted; rather, the supply curve has become flatter.

Answer 1

The correct answer is option b.

Step-by-step explanation:

The supply curve is an upward sloping curve. It is upward sloping because of the law of supply which states that there is a positive relationship between price and quantity supplied.

When there is an increase in the quantity supplied at each possible price it implies that the overall supply has increased. It is shown by a rightward shift in the supply curve.

An increase in supply is caused because of changes in other factors that affect supply while the price of the product does not change.