A rightward shift of a market supply curve might be caused by:

A. a decrease in the income of consumers.
B. an increase in the price of the final product.
C. an increase in the supply of a substitute good.
D. an increase in the wages of labor employed in the industry.
E. the entry of new firms in the industry.

Question

23-06-2024
Social Studies

Answered

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A rightward shift of a market supply curve might be caused by:

A. a decrease in the income of consumers.
B. an increase in the price of the final product.
C. an increase in the supply of a substitute good.
D. an increase in the wages of labor employed in the industry.
E. the entry of new firms in the industry.

Sagot :

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GinnyAnswer GinnyAnswer · Answer 1 · 2024-06-23T23:19:26-04:00

Final answer:

An increase in wages of labor leads to a leftward shift in the supply curve.

Explanation:

An increase in wages of labor employed in the industry would cause a leftward shift in the market supply curve. When wages increase, production costs rise, leading some firms to experience losses and potentially shut down. This results in a contraction of output produced in the market.

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Sagot :

Final answer:

Explanation:

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