A change in a nonprice determinant of supply will:

• A. shift the supply curve either to the left or right
• B. leave the supply curve unchanged
• C. shift the demand curve
• D. cause movement along the supply curve

Answer: (A)

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 happens when the price of the good changes, affecting the quantity supplied.
2. Recognize that nonprice determinants of supply are factors other than the price of the good that affect supply. Examples include input prices, technology, number of sellers, expectations, and government policies.
3. Recall that a change in any of these nonprice determinants causes the entire supply curve to shift because the quantity supplied changes at every price level.
4. Identify the direction of the shift: if the nonprice determinant improves supply (e.g., better technology), the supply curve shifts to the right; if it worsens supply (e.g., higher input costs), the supply curve shifts to the left.
5. Conclude that a change in a nonprice determinant of supply will shift the supply curve either to the left or right, rather than causing movement along the curve or affecting the demand curve.