Which of the following would shift the entire supply curve for electricity to the left?
A) a decrease in the price per unit of electricity
B) a decrease in the price of coal used to generate electricity
C) new EPA regulations that force the closing of the worst polluting coal-burning power plants
D) a decrease in the price of alternative forms of energy
E) a technological improvement that reduces the cost of producing electricity

Question

Quizplus · Accepted Answer

The EPA regulations would force the closure of the worst polluting coal-burning power plants, which would decrease the supply of electricity and shift the supply curve to the left. A decrease in the price per unit of electricity (A), a decrease in the price of coal used to generate electricity (B), a decrease in the price of alternative forms of energy (D), and a technological improvement that reduces the cost of producing electricity (E) would all increase the supply of electricity and shift the supply curve to the right.

Which of the Following Would Shift the Entire Supply Curve