Which of the following events would cause the supply curve for a good to shift?

• A. A change in consumer preferences
• B. A decrease in the price of the good
• C. An increase in consumer income
• D. A technological advancement that lowers production costs

Answer: (D)

Verified step by step guidance

1. Understand that the supply curve represents the relationship between the price of a good and the quantity that producers are willing to supply, holding other factors constant.
2. Recognize that a change in consumer preferences or an increase in consumer income affects demand, not supply, so these do not shift the supply curve.
3. Note that a change in the price of the good itself causes a movement along the supply curve, not a shift of the curve.
4. Identify that factors which affect production costs or technology can shift the supply curve because they change the quantity supplied at every price.
5. Conclude that a technological advancement that lowers production costs shifts the supply curve to the right, indicating an increase in supply.