The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1

-A rightward shift of a market supply curve might be caused by:
A)the entry of new firms in the industry.
B)an increase in the wages of labor employed in the industry.
C)an increase in the price of the final product.
D)a decrease in the income of consumers.
E)an increase in the supply of a substitute good.

Question

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1
 
-A rightward shift of a market supply curve might be caused by:
A)the entry of new firms in the industry. 
B)an increase in the wages of labor employed in the industry. 
C)an increase in the price of the final product. 
D)a decrease in the income of consumers. 
E)an increase in the supply of a substitute good.

Quizplus · Accepted Answer

The entry of new firms in the industry will increase the number of suppliers, leading to an increase in supply and a rightward shift of the market supply curve. Increasing wages (B) would increase costs and decrease supply. An increase in the price of the final product (C) would potentially increase profits and incentivize more production, but it would not necessarily lead to an increase in the number of suppliers. A decrease in the income of consumers (D) would decrease demand and potentially shift the demand curve, but it would not impact the supply curve. An increase in the supply of a substitute good (E) would impact the demand for the good, but it would not impact the supply curve.

The Table Given Below Reports the Quantity Demanded of a Good