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Which of the following will shift the supply curve to the right?

a) There is an increase in the number of consumers in the market.
b. There is an increase in the number of firms producing the good.
c. Input prices rise.
d. Sales taxes increase.

1 Answer

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Final answer:

An increase in the number of firms producing the good will shift the supply curve to the right, as it allows for a greater quantity of the good to be supplied at any given price.

Step-by-step explanation:

Which of the following will shift the supply curve to the right? The correct answer is that an increase in the number of firms producing the good will cause the supply curve to shift to the right. When there are more firms in the market, there is an increase in the total amount of the good that can be supplied at any given price, resulting in a rightward shift in supply.

An increase in the number of consumers does not affect supply directly; rather, it affects demand. Higher input prices and increased sales taxes both raise production costs for firms, which would typically decrease supply, shifting the supply curve to the left. Neither of these would lead to a rightward shift in the supply curve.

Therefore, b) There is an increase in the number of firms producing the good is the correct choice. It is essential to remember that supply factors include production costs, technology, number of sellers, and other elements that impact the quantity providers are willing and able to sell at different price points.

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