Question

Which of the following will not cause the supply curve to shift?

a change in resource costs

a technological change

a change in the price of the good.

a change in the prices of other goods.

Answer 1

Answer

The correct answer is (c) a change in the price of the good.

Shift in supply curve occurs when there is change in supply and Movement along supply curve occurs when there is change in quantity supplied.

Change in quantity supplied occurs only when there is change in its own price. Hence change in its own price of a good will result in change in quantity supplied and hence will result in movement along supply curve and thus This will not result in shift of supply curve. Hence option (c) is the correct answer.

Factors like technological change, change in cost of resources(input) and Change in price of other goods will result in change in supply and hence change in these factors will result in change in supply and hence shift in supply curve. Change in these factors result in change in supply at all price level and hence will result in shift in supply curve. Hence option (a) , (b) and (d) are incorrect.

Hence, the correct answer is (c) a change in the price of the good.