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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


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

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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