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Homework answers / question archive / Which of the following will shift the supply curve to the right? a

Which of the following will shift the supply curve to the right? a

Economics

Which of the following will shift the supply curve to the right?

  • a. There is an increase in the number of consumers in the market
  • b. There is an increase in the number of firms producing the good
  • c. Input prices rise
  • d. Sales tax increase

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The correct answer is b. There is an increase in the number of firms producing the good.

The increase in the number of firms that produce a given good will increase the market supply thus shifting the supply curve to the right. The increase in the number of consumers increases demand. Both the increase in input prices and in sales tax reduce the market supply which shifts the supply curve to the left.