Figure 4.5 shows the supply curves of a non-durable good. A shift from the supply curve S to S' could be caused by:

a. a patent application that restricts the use of a particular production technology.
b. a decrease in consumer income.
c. an expectation of a higher product price in the future among suppliers.
d. an increase in the current price of the product.
e. several competing producers going out of business.


Answer: c. an expectation of a higher product price in the future among suppliers.

Economics

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