The best possible explanation for a rightward shift in the market supply curve for a product is C. Introduction of a new technique that makes the production of that commodity cheaper.

Here's why:

A. Increase in the price of raw materials: This would actually cause the supply curve to shift leftwards, not rightwards, because the product has become more expensive to produce, so less will be supplied at each price.

B. Introduction of a tax on that product by the government: This would also cause the supply curve to shift leftwards, not rightwards, because the tax makes the product more expensive to produce, reducing the quantity supplied at each price.

C. Introduction of a new technique that makes the production of that commodity cheaper: This would cause the supply curve to shift rightwards because the product has become cheaper to produce, so more will be supplied at each price.

D. An advertising campaign that is successful in promoting the product: This would affect the demand curve, not the supply curve. If the advertising campaign is successful, it would increase demand for the product (shift the demand curve rightwards), but it wouldn't directly affect the quantity supplied at each price.

Question

The best possible explanation for a rightward shift in the market supply curve for a product is C. Introduction of a new technique that makes the production of that commodity cheaper.

Here's why:

A. Increase in the price of raw materials: This would actually cause the supply curve to shift leftwards, not rightwards, because the product has become more expensive to produce, so less will be supplied at each price.

B. Introduction of a tax on that product by the government: This would also cause the supply curve to shift leftwards, not rightwards, because the tax makes the product more expensive to produce, reducing the quantity supplied at each price.

C. Introduction of a new technique that makes the production of that commodity cheaper: This would cause the supply curve to shift rightwards because the product has become cheaper to produce, so more will be supplied at each price.

D. An advertising campaign that is successful in promoting the product: This would affect the demand curve, not the supply curve. If the advertising campaign is successful, it would increase demand for the product (shift the demand curve rightwards), but it wouldn't directly affect the quantity supplied at each price.

Knowee AI · Accepted Answer

The best possible explanation for a rightward shift in the market supply curve for a product is C. Introduction of a new technique that makes the production of that commodity cheaper.

Here's why:

A. Increase in the price of raw materials: This would actually cause the supply curve to shift leftwards, not rightwards, because the product has become more expensive to produce, so less will be supplied at each price.

B. Introduction of a tax on that product by the government: This would also cause the supply curve to shift leftwards, not rightwards, because the tax makes the product more expensive to produce, reducing the quantity supplied at each price.

C. Introduction of a new technique that makes the production of that commodity cheaper: This would cause the supply curve to shift rightwards because the product has become cheaper to produce, so more will be supplied at each price.

D. An advertising campaign that is successful in promoting the product: This would affect the demand curve, not the supply curve. If the advertising campaign is successful, it would increase demand for the product (shift the demand curve rightwards), but it wouldn't directly affect the quantity supplied at each price.

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