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Multiple Choice
Which of the following will shift the supply curve for apples to the right?
A
A technological improvement in apple harvesting
B
An increase in the price of apples
C
A decrease in the number of apple producers
D
A rise in the cost of fertilizer used for apple orchards
Verified step by step guidance
1
Understand that a supply curve shows the relationship between the price of a good and the quantity supplied, holding other factors constant.
Recall that a rightward shift in the supply curve means an increase in supply at every price, which occurs when producers can supply more apples at the same price.
Analyze each option to see if it affects supply directly (shifting the curve) or just causes movement along the curve:
- A technological improvement in apple harvesting typically lowers production costs or increases productivity, leading to an increase in supply and thus a rightward shift.
- An increase in the price of apples causes movement along the supply curve, not a shift.
- A decrease in the number of apple producers reduces overall supply, shifting the supply curve to the left.
- A rise in the cost of fertilizer increases production costs, reducing supply and shifting the supply curve to the left.
Conclude that only the technological improvement in apple harvesting shifts the supply curve to the right because it makes production more efficient.
Summarize that factors which reduce production costs or improve productivity shift the supply curve right, while changes in price cause movement along the curve, and factors increasing costs or reducing producers shift supply left.