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Multiple Choice
Which of the following will cause a shift in the supply curve, rather than a movement along the supply curve?
A
A change in the cost of production inputs
B
A change in the price of the good itself
C
A change in consumer income
D
A change in the quantity demanded
Verified step by step guidance
1
Understand the difference between a movement along the supply curve and a shift of the supply curve. A movement along the supply curve occurs when the price of the good changes, affecting the quantity supplied.
Recognize that a shift in the supply curve happens when factors other than the good's own price change, such as production costs, technology, or input prices, which affect the overall supply at every price level.
Analyze each option: A change in the price of the good itself causes a movement along the supply curve, not a shift.
A change in consumer income affects demand, not supply, so it does not shift the supply curve.
A change in the cost of production inputs affects the cost structure for producers, causing the supply curve to shift either left or right depending on whether costs increase or decrease.