Question

Describe five factors that may cause a shift in a good’s supply curve. Explain how other goods could impact the supply of a good

Answer 1

Answer:

Five factors that may cause a shift in a good’s supply curve is discussed below in details.

Explanation:

Five factors that may cause a shift in a good’s supply curve are such as:

• Improvement in technology leading to a fall in the cost of production.
• Reduction in factor costs creating a reduction in the factor of production.
• Increase in the number of firms in the Industry. It causes an increase in market supply even when the price of the commodity remains the same.
• The decrease in the cost of competing for merchandise. it promotes the producer to trade more at the current prices.
• The decrease in taxation increases sales due to decreases in the cost of production.