What would move the supply curve to the right ?

Question

what would move the supply curve for good x to the right???

a= an increase in the wages of workers who produce good x

b= an increase in the cost of machinery used to produce good x

c= a technological improvement in the production of good x

d= an increase in the price of good x

e= a fall in the price of a substitute for good x

...........?????????????????.............

Answer 1

C.

That means increasing the production or supply.

Answer 2

If the supply curve moves to the right, that means that there is greater supply.  Take a look at your options and see which one would result in an increased supply.  

If wages increase then producers have a higher cost to produce the same product, so they would decrease supply.  If the machinery costs increase then producers have a higher cost to produce the same product, so they would decrease supply.  If there is a technological improvement then you can produce the same product with a lesser cost, so supply increases.

Then C =  a technological improvement in the production of good x is the correct answer.

Hope this helps you!

Answer 3

A shift to the right implies that at each price the supply will be higher. Since the supply curve is only a portion of the marginal cost curve above the lowest average cost point, this means that at each level of marginal cost (= price), the supply is more. It means either the cost of inputs have declined or the productivity of inputs have increased.

But 'a= an increase in the wages of workers who produce good x'  will increase the costs and shift the marginal cost curve to the left rather than shifting it to the right as the marginal cost curve will be higher at each level of output. Again, 'b= an increase in the cost of machinery used to produce good x' will increase fixed costs and not the marginal cost curve and therefore cannot shift the supply curve to the right. Then, 'd= an increase in the price of good x' can lead to an increase in the supply as one moves along the supply curve and there cannot be any shift in the supply curve. Similarly, a fall in the price of a subsitute' can cause a fall in the demand for good x but cannot shift the supply curve. The only eason that the supply curve can shift is because of

'c= a technological improvement in the production of good x' because this will lead to an increase in productivity and a reduction in costs, thereby leading to lower marginal cost at each level of output,. So, at each value of marginal cost (=price for profit maximization), the output will be higher than before implying a shift of the supply curve to the right.