Question : What is the best possible explanation for a shift in the market supply curve for a product?
Option 1: An advertising campaign that is successful in promoting the product
Option 2: Introduction of a tax on that product by the government
Option 3: Increase in the price of raw materials
Option 4: Introduction of a new technique that makes the production of that commodity cheaper
Correct Answer: Introduction of a new technique that makes the production of that commodity cheaper
Solution : A new technique that makes it cheaper to produce the goods best explains a shift to the right in the market supply curve. A shift to the right in the supply curve, such as from new manufacturing technology, results in a lower equilibrium price and a higher quantity.
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