A rightward shift of a market supply curve might be caused by:

a. an increase in the price of the final product.

b. an increase in the wages of labor employed in the industry.

c. the entry of new firms in the industry.

d. a decrease in the income of consumers.

e. an increase in the supply of a substitute good.

Question

Business

Stephanie Bonilla

30 December, 09:03

A rightward shift of a market supply curve might be caused by:

a. an increase in the price of the final product.

b. an increase in the wages of labor employed in the industry.

c. the entry of new firms in the industry.

d. a decrease in the income of consumers.

e. an increase in the supply of a substitute good.

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Answers (1)

Know the Answer?

Rex Mann · Answer 1

Among the five choices, the most plausible cause on a rightward shift of a market supply curve would be:

c. the entry of new firms in the industry

The entry of new firms would result in the introduction of additional supply of products on the market. This would result in an increase in supply without change in price.