Which of the following is a non-price determinant that can shift the supply curve?

Prepare for the Pre-IB Economics Exam with multiple choice questions, flashcards, and detailed explanations. Enhance your understanding and boost your confidence for exam day!

Multiple Choice

Which of the following is a non-price determinant that can shift the supply curve?

Explanation:
Supply can shift due to factors other than the price of the good itself. Input prices affect production costs directly: when the prices of inputs rise, producing the good becomes more expensive, so producers are willing to supply less at every price, shifting the supply curve to the left; when input prices fall, supply shifts to the right. The price of the good causes movement along the supply curve rather than a shift. Consumer income and prices of related goods influence demand, not supply.

Supply can shift due to factors other than the price of the good itself. Input prices affect production costs directly: when the prices of inputs rise, producing the good becomes more expensive, so producers are willing to supply less at every price, shifting the supply curve to the left; when input prices fall, supply shifts to the right. The price of the good causes movement along the supply curve rather than a shift. Consumer income and prices of related goods influence demand, not supply.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy