Which of the following would cause the market supply curve for coffee to shift to the right (increase in supply) rather than a movement along the existing supply curve?

• A. An improvement in coffee-growing technology that lowers production costs
• B. A decrease in the quantity of coffee supplied due to a lower market price
• C. An increase in the price of coffee, holding everything else constant
• D. A decrease in the price of coffee, holding everything else constant

Answer: (A)

Verified step by step guidance

1. Understand the difference between a shift in the supply curve and a movement along the supply curve. A shift in supply means the entire supply curve moves either to the right (increase in supply) or to the left (decrease in supply), while a movement along the supply curve is caused by a change in the price of the good itself.
2. Identify factors that cause a shift in the supply curve. These include changes in production technology, input prices, number of sellers, expectations, and government policies, but not changes in the good's own price.
3. Analyze the option 'An improvement in coffee-growing technology that lowers production costs.' Since this reduces the cost of producing coffee, producers are willing to supply more coffee at every price level, causing the supply curve to shift to the right.
4. Examine the options involving changes in the price of coffee. An increase or decrease in the price of coffee causes a movement along the existing supply curve, not a shift, because the supply curve itself remains unchanged.
5. Conclude that only the improvement in technology option causes a rightward shift in the supply curve, representing an increase in supply independent of the coffee price.