Question

Which influence will shift the supply curve?

a the rising popularity of a product
b an increase in population
c expectations of a future decline in prices
d an increase in the incomes of consumers

Answer 1

Expectations of a future decline in prices can lead to a shift in the supply curve as firms try to sell more at current higher prices before the decline.

Step-by-step explanation:

The influence that will shift the supply curve is expectations of a future decline in prices. Factors that affect the supply curve include technological advancements, changes in the cost of production, and expectations of future market conditions. If firms expect future prices to fall, they may supply more now to take advantage of the higher current prices, which would shift the supply curve to the right. However, this could also depend on the context and whether firms can adjust their production in time.