Question

Which of the following will shift the supply curve for a product rightward?

1) Increase in production costs
2) Decrease in production costs
3) Increase in demand for the product
4) Decrease in demand for the product

Answer 1

Technological improvements and decrease in production costs will shift the supply curve rightward, while changes in demand will shift the demand curve.

Step-by-step explanation:

An improvement in technology that reduces the cost of production will cause an increase in supply. This can be shown as a rightward shift in the supply curve. A decrease in production costs is also an improvement in technology and will have the same effect of shifting the supply curve rightward.

In contrast, an increase in demand for the product or a decrease in demand for the product will shift the demand curve, not the supply curve.