Which of the following is not a factor that might shift the supply curve for Product X?

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BlackTom AI · Accepted Answer

First, restating the question and options helps frame what we're evaluating: Which choice is not a factor that might shift the supply curve for Product X?
Option a: New technology is invented that enables quick and low-cost production of Product X. This is a classic supply-shift factor because it changes production costs and capabilities, effectively shifting the entire supply curve to the right (or left if worse). So this option describes a genuine supply shift.
Option b: An increase in the number of sellers of Product X. More sellers entering the market increases overall market supply at every price, which shifts the supply curve to the right. This is another standard supply-shift factor.
Option c: An increase in the price of Product X. Here, the price change causes movement along the supply curve, not a shift of the curve itself. The supply curve shows quantity supplied at each price; a higher price leads to a higher quantity supplied along the same curve, but it does not move the curve itself. This makes it not a factor that shifts the supply curve.
Option d: A decrease in the costs of production of Product X. Lower production costs reduce marginal cost and make production more profitable at each price, shifting the supply curve to the right. This is clearly a supply-shift factor.
In terms of common misunderstandings, it’s easy to confuse a change in price with a shift in supply. A price change moves you along the existing supply curve, reflecting a change in quantity supplied, while a change in non-price factors (technology, input costs, number of sellers, expectations, etc.) shifts the entire curve. The fact that higher price leads to more supplied is illustrated by movement along the curve, not a left-right shift of the curve itself, which is why option c describes a non-shift scenario.
Additionally, noting the context: the problem asks for what is not a shifting factor; the other three options all alter the conditions that determine supply, whereas the price of Product X alone does not reconfigure the curve but rather causes a different point on it to be observed.
In summary, option c matches the distinction between a movement along the supply curve (price effect) and a shift of the supply curve (non-price determinants). The alternative factors (a, b, d) are all standard causes of a supply curve shift, affecting the quantity supplied at every price.

MUF0061 Economics Unit 1 - Semester 1, 2025 Revision Quiz - Supply (10 - 15 minutes)

Which of the following is not a factor that might shift the supply curve for Product X?

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