Which scenario could cause a rightward shift in the supply curve related to productivity?

Disable ads (and more) with a premium pass for a one time $4.99 payment

Study for the GCSE Economics Exam with comprehensive flashcards and multiple choice questions. Each question includes hints and detailed explanations. Prepare thoroughly for your exam!

The introduction of advanced production technology enhances the efficiency of production processes. When firms adopt new technology, they can produce more output with the same amount of input or maintain the same output level with fewer inputs. This increase in productivity allows businesses to supply more goods at every price level, resulting in a rightward shift of the supply curve. A rightward shift indicates an increase in supply, meaning producers are willing and able to sell more at any given price, which can help meet consumer demand.

In contrast, a decrease in labor force productivity would typically result in a leftward shift of the supply curve, as it would mean less output per worker, reducing the overall supply. Meanwhile, an increase in raw material costs would likely lead to a higher cost of production, which can also cause a leftward shift in the supply curve since producers may supply less at existing prices. An increase in market demand generally influences the demand curve rather than the supply curve directly, and while it can encourage suppliers to produce more, it does not shift the supply curve itself.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy