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

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

BlackTom AI · Accepted Answer

Topic at hand is the factors that cause a shift in the supply curve S to S'.
Option 1: an increase in the number of sellers. This makes more sellers available to produce the good, increasing overall market supply at each price, which shifts the supply curve to the right from S' toward S. This is a classic reason for a rightward shift in supply.
Option 2: an increase in input prices. Higher input costs reduce producers' willingness or ability to supply the same quantity at existing prices, which typically shifts the supply curve to the left (decrease in supply). This would move from S to a position left of S, not from S' to S if S' is to the right of S. Therefore, this option would not explain a shift from S' toward S; it would imply the opposite direction of shift.
Option 3: a decrease in the number of buyers. This affects the demand side, not the supply side. A change in buyer numbers shifts the demand curve D, not the supply curve S. Therefore, it cannot cause the shift S to S' in the supply framework.
Option 4: an increase in the price of the good. A change in the good’s price causes a movement along the supply curve, not a parallel shift of the entire curve. The rise in price would move us upward along S, not shift S to S'. Hence, this is not a shift, but a movement along the existing supply schedule.
Overall, the primary factor that would cause a rightward shift in supply (S' to S) is the increase in the number of sellers. The increase in input prices would typically induce a leftward shift, not the observed shift from S' to S. The decrease in buyers and the price change are related to demand or movement along the curve rather than a shift in the supply itself.

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

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