Question

If the number of firms in an industry​ decreases, the supply curve will shift to the right. A. True B. False A change in which of the following will result in a shift of the supply​ curve? A. cost of inputs used to produce the product B. technology and productivity C. taxes and subsidies D. All of the above.

Answer 1

Answer:

The correct answer is option B.

The correct answer is option D.

Explanation:

If the number of firms in an industry decreases, the overall market supply will decrease. This decrease in supply will cause the market supply curve to shift to the left. So the statement given in the question is false.  

The cost of production is inversely related to supply. An increase in the cost of production causes supply to decline, shifting the curve to the left and vice versa.  

Technology and productivity are directly related, an improvement in technology will cause the supply to increase shifting the curve to the right.  

Taxes cause the supply to decrease as it is seen as a cost and it reduces the price received by the firms. This causes the supply curve to shift to the left.

Subsidies reduce the cost of production so the supply curve shifts to the left.