Question

Which of the following would cause a rightward shift of the supply curve for cell-phone services?

• a subsidy to cell-phone producers

• a tax on cell-phone producers

• an increase in price of cell-phones

• a decrease in price of cell-phones

Answer 1

Shift in supply curve only happen if there is more than other factor than just the price isinvolved .

The Other factors can be increasing Technology ,giving subsidy by the government .

In the given options above, if tax is imlemented on the cell produces producers then it will shift the supply curve to the leftward but if the subsidy is provided then it will shift the curve towards right.

if the factor involved is only price then there is increase or decrease in the supply curve not shift .

so the only true option is A

Rightward Ships in Supply Cune