When the supply curve shifts to the right or left, which of the following occurs?

• A. The price of the good remains unchanged.
• B. The quantity supplied at every price changes.
• C. The demand curve shifts in the same direction.
• D. There is movement along the supply curve.

Answer: (B)

Verified step by step guidance

1. Understand what a supply curve represents: it shows the relationship between the price of a good and the quantity supplied by producers.
2. Recognize that a shift in the supply curve means that at every price, the quantity supplied changes. This is different from a movement along the supply curve, which happens when the price changes but the supply curve itself does not shift.
3. When the supply curve shifts to the right, it indicates an increase in supply, meaning producers are willing to supply more at every price. Conversely, a shift to the left indicates a decrease in supply.
4. Note that a shift in the supply curve does not imply that the demand curve shifts or that the price remains unchanged. Instead, the new supply curve changes the equilibrium price and quantity in the market.
5. Therefore, the key effect of a supply curve shift is that the quantity supplied at every price changes, which is captured by the entire curve moving right or left.