Which of the following would cause a shift to the right of the supply curve for gasoline? I. A large increase in the price of public transportation.
II) A large decrease in the price of automobiles.
III) A large reduction in the costs of producing gasoline.
A) I only
B) II only
C) III only
D) II and III only

Question

Quizplus · Accepted Answer

A large reduction in the costs of producing gasoline would make it cheaper and easier for suppliers to produce and sell gasoline, thus causing a shift to the right of the supply curve. Factors like increases or decreases in the price of public transportation or automobiles would affect the demand for gasoline, not the supply.

Which of the Following Would Cause a Shift to the Right