If the market supply curve for a product shifts rightwards, what is the best possible explanation for this shift?
Q. If the market supply curve for a product shifts rightwards, what is the best possible explanation for this shift?
- Increase in the price of raw materials
- Introduction of a tax on that product by the government
- Introduction of a new technique that makes the production of that commodity cheaper
- An advertising campaign that is successful in promoting the product
Answer: Introduction of a new technique that makes the production of that commodity cheaper