Question

Which of the following might cause the supply curve for an inferior good to shift to the right? 

a. an increase in input prices 

b. a decrease in consumer income 

c, an improvement in production technology that makes production of the good more pro

d. a decrease in the number of sellers in the market

Answer 1

Answer 7

The correct answer is (c) An improvement in Product Technology that makes production of the goods more profitable

Increase in input prices will result in increase in cost(or Marginal Cost) of producing a good and hence at the given price it will sell lesser amount of inferior good(or normal good) and hence Supply will shift to the left. Hence, option (a) is incorrect

Decrease in consumer will affect demand of a good and not a supply of a good. Hence Option (b) is incorrect.

Improvement in technology means that there is advancement in technology. Hence, advancement in technology will result in decrease in cost of producing a good and hence Producers will supply more at any given price and hence, supply of inferior good(or normal good) will shift to the right. Hence Option (c) is correct

Decrease in number of sellers lesser number of people will supply at any given price and hence Supply will shift to the left. Hence, option (d) is incorrect.

Hence the correct answer is (c) An improvement in Product Technology that makes production of the goods more profitable