-In the above figure,the shift in the supply curve from S to S? might reflect
A) a decrease in the cost of the tomato sauce used to produce pizza.
B) a decrease in the number of pizza producers.
C) an increase in the price of a pizza.
D) an increase in income if pizza is a normal good.
E) an increase in the price of a good that is a substitute for consumers.

Question

-In the above figure,the shift in the supply curve from S to S? might reflect
A) a decrease in the cost of the tomato sauce used to produce pizza. 
B) a decrease in the number of pizza producers. 
C) an increase in the price of a pizza. 
D) an increase in income if pizza is a normal good. 
E) an increase in the price of a good that is a substitute for consumers.

Quizplus · Accepted Answer

A shift from S to S' (an outward or rightward shift in the supply curve) typically indicates that it has become easier or more cost-effective to produce the good in question. A decrease in the cost of tomato sauce, an input in pizza production, would make it cheaper to produce pizzas, leading to an increase in supply.

-In the Above Figure,the Shift in the Supply Curve from S