Q139
What best explains a shift in market supply curve to the right?
A.
An advertising campaign is successful in promoting the good
B.
A new technique makes it cheaper to produce the good
AnswerC.
The government introduces a tax on the good
D.
The price of raw materials increases
Answer: Option B
Solution
Answer: Option B
Solution:
A new technique makes it cheaper to produce the good best explains a shift in market supply curve to the right. A rightward shift in the supply curve, say from a new production technology, leads to a lower equilibrium price and a greater quantity.