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

Question

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

查看解析

登录即可查看完整答案

类似问题

An improvement in production technology will shift the

Part D: An increase in the price of pizza sauce will cause a movement from point B on supply curve S2 to

Part B: An increase in supply is represented by the movement from S2 to

What effect would a new tax on producers likely have on the supply curve?

A student says “Supply of ice cream increases with increasing population”. How will you show this change in the market diagram?

A student says “Supply of ice cream decreases with decreasing population”. How will you show this change in the market diagram?