1)All of the following will shift the supply curve of bread to the right except: a) an increase in the price of bread b) an improvement in technology that reduces baking costs c) a decrease in the price of flour d) an expectation that the price of bread will fall in the future 2)The price of shoes increases

1)

All of the following will shift the supply curve of bread to the right except an increase in the price of bread.

• The good price is the only supply determinant that does not cause a shift in the supply curve. An increase in the bread price will increase the quantity supplied for bread by the law of supply. This means that the change in good price only causes the movement along the supply curve.
• Other supply determinants rather than price will cause the shift of the supply curve. An improvement in technology that reduces baking costs will increase supply at each level of price and shift the supply curve of bread to the right. A decrease in the price of flour will lower the cost of inputs for bread production, which results in the rightward shift of the supply curve of bread. An expectation that the price of bread will fall will make the producers supply bread more and shift the supply curve of bread to the right.

Therefore, the correct option is A.

2)

A. Not shift

Reason: Changes in price of the shoes will bring changes along the supply curve. This means that, when price of shoes changes, the quantity supplied of shoes will change, but there will be no change in supply of shoes. The supply curve will remain as it is. Shifts in the supply curve occur due to changes in non price factors which can influence the supply of the good.