What leads to a rightward shift in the supply curve?
Understand the Problem
The question is asking about the factors that can cause the supply curve to shift to the right, which typically indicates an increase in supply. This involves understanding economic principles regarding supply and demand.
Answer
Decreased production costs, technological advancements, improved supply conditions
A rightward shift in the supply curve means that the quantity supplied increases at the same price due to favorable changes in non-price factors such as decreased production costs, technological advancements, and improved conditions for supply.
Answer for screen readers
A rightward shift in the supply curve means that the quantity supplied increases at the same price due to favorable changes in non-price factors such as decreased production costs, technological advancements, and improved conditions for supply.
More Information
A rightward shift in the supply curve indicates that producers are willing to supply more of a good or service at all price levels, primarily due to non-price factors such as improved technology or reduced production costs.
Tips
Confusing a rightward shift in the supply curve with a movement along the supply curve. A shift signifies a change in the supply conditions, while a movement along the curve indicates a change in price.
Sources
- What factors change supply? (article) | Khan Academy - khanacademy.org
- Supply curve shifts: The supply curve shifts only when the quantity supplied changes at a given price - investopedia.com
- Rightward Shift in Supply Curve ... If the quantity of the product/service supplied at each price level increases due to economic factors other than price, the ... - vaia.com
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