Figure 4-6Refer to Figure 4-6.The shift from S to S' could be caused by an

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Figure 4-6​Refer to Figure 4-6.The shift from S to S' could be caused by an

BlackTom AI · Accepted Answer

In Figure 4-6, the shift from S to S' represents a change in the supply curve.
Since S' is to the right of S, the quantity supplied increases at every price. This rightward shift is typically caused by a decrease in production costs or an improvement in production technology, which makes supplying the good more efficient and profitable.
Option analysis:
- Option c: 'improvement in production technology.' This is a classic driver of a rightward shift in the supply curve. Better technology reduces marginal costs, increases productivity, and enables producers to supply more at each price, which matches the observed shift from S to S'.
- If there were other options (not shown here), we would evaluate them similarly: a decrease in input costs or a favorable change in taxes/subsidies would also shift supply to the right; an increase in production costs or a negative expectation about future prices would typically shift supply to the left. However, those alternatives are not presented in the provided options.
Overall, the given correct rationale is that an improvement in production technology lowers costs and increases output, thereby shifting the supply curve rightward from S to S'.

Figure 4-6Refer to Figure 4-6.The shift from S to S' could be caused by an

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