A change in which factor would shift the supply curve?
A) the price of the good being sold
B) the demand for the product
C) production technology
D) the willingness of consumers to pay

Question

Quizplus · Accepted Answer

Production technology affects the cost of production, thus impacting the willingness of suppliers to produce and sell the good at each price point. An improvement in production technology would decrease costs and shift the supply curve to the right, increasing the quantity supplied at each price level. A deterioration in production technology would increase costs and shift the supply curve to the left, decreasing the quantity supplied at each price level. The other factors listed (price of the good, demand, and willingness of consumers to pay) all affect the quantity supplied at a given price but do not directly shift the supply curve.

A Change in Which Factor Would Shift the Supply Curve