An advertising campaign is successful in promoting the good
A new technique makes it cheaper to produce the good
The government introduces a tax on the good
The price of raw materials increases
Answer is Right!
Answer is Wrong!
The correct answer is: B. A new technique makes it cheaper to produce the good.
A shift in the market supply curve to the right indicates that producers are willing and able to supply more of a good at any given price. This can be caused by a number of factors, including:
- A decrease in the cost of production. This could be due to technological advances, lower input prices, or government subsidies.
- An increase in the number of producers in the market. This could be due to new firms entering the market or existing firms expanding their production.
- An increase in the expected future price of the good. This could lead producers to increase their current production in order to stockpile the good for future sale.
Option A is incorrect because an advertising campaign is more likely to increase demand for a good, rather than supply. Option C is incorrect because a tax on a good will increase the cost of production, which will lead producers to supply less of the good. Option D is incorrect because an increase in the price of raw materials will increase the cost of production, which will lead producers to supply less of the good.