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Which of the following might cause the supply curve for an inferior good to shift to the right?

a) Increase in consumer income
b) Decrease in consumer income
c) Changes in technology
d) Shift in consumer preferences

1 Answer

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Final answer:

The correct answer is option c. An improvement in technology is the factor that can cause the supply curve for an inferior good to shift to the right. It reduces the cost of production, allowing firms to supply more at the same price.

Step-by-step explanation:

To determine which factor might cause the supply curve for an inferior good to shift to the right, it's important to understand the distinction between shifts in supply versus shifts in demand. An inferior good is one where demand decreases as consumer income rises, which is indicative of negative income elasticity of demand. In the provided options, the one that directly affects supply is related to changes in technology.

An improvement in technology often leads to increased efficiency and reduced costs of production. This reduction in costs allows firms to supply more of the product at the same price or supply the same quantity at a lower price. Therefore, it's a technological improvement that can cause the supply curve for both normal and inferior goods to shift to the right. This shift represents a higher quantity of goods supplied across various price levels.

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