If a nonprice determinant of supply causes an increase in supply, what will happen to the supply curve?

• A. The supply curve will shift to the left.
• B. The supply curve will remain unchanged.
• C. The supply curve will move upward along the curve.
• D. The supply curve will shift to the right.

Answer: (D)

Verified step by step guidance

1. Understand that a nonprice determinant of supply refers to factors other than the price of the good that affect the quantity supplied, such as technology, input prices, number of sellers, expectations, or government policies.
2. Recall that when a nonprice determinant causes an increase in supply, it means producers are willing and able to supply more of the good at every price level.
3. Recognize that an increase in supply is represented graphically by a shift of the entire supply curve, not a movement along the curve (which happens only when price changes).
4. Identify the direction of the shift: an increase in supply shifts the supply curve to the right, indicating a higher quantity supplied at each price.
5. Conclude that the supply curve shifts to the right, reflecting the increase in supply caused by the nonprice determinant.