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Multiple Choice
Which of the following graphs best illustrates a rightward shift in the supply curve for a good?
A
A graph where the supply curve shifts to the left, indicating a decrease in supply at every price level.
B
A graph where the supply curve remains stationary and only the equilibrium price changes.
C
A graph where the demand curve shifts to the right, with the supply curve unchanged.
D
A graph where the supply curve shifts to the right, indicating an increase in supply at every price level.
Verified step by step guidance
1
Understand that a supply curve shows the relationship between the price of a good and the quantity supplied by producers.
Recognize that a rightward shift in the supply curve means that at every price level, producers are willing to supply more of the good than before.
Recall that such a shift is typically caused by factors like improvements in technology, decreases in input prices, or other conditions that make production more efficient or cheaper.
Visualize the supply curve moving to the right on a graph, which means the entire curve shifts horizontally to the right, not just a movement along the curve.
Distinguish this from a leftward shift (which indicates a decrease in supply), a stationary supply curve (no change in supply), or a shift in the demand curve (which affects demand, not supply).