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Homework answers / question archive / All of the following will cause a shift in the supply of jeans EXCEPT Select one: a

All of the following will cause a shift in the supply of jeans EXCEPT Select one: a

Economics

All of the following will cause a shift in the supply of jeans EXCEPT Select one:

a. a decrease in the prices of jeans.

b. a decrease in the number of jean manufacturers.

c. an increase in the cost of producing jeans.

d. a per-unit government subsidy on the production of jeans.

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The correct option is: a. a decrease in the prices of jeans.

According to the law of supply, holding all the other factors constant, the quantity supplied of a good or service increases as the price increases and it decreases as the price increases. Thus, an increase in the price of the good or service will cause a movement along the supply curve while a change in any other factor that affects the quantity supplied will cause a shift in the supply curve.