Question

Fill In The Blank!!
When government intervention causes the supply of a good to rise, the supply curve shifts to the __________.

Answer 1

@TrashMan914

Answer 2

Perhaps this could help:
http://www.tutor2u.net/economics/content/topics/demandsupply/supply.htm

Answer 3

"...the supply curve shifts to the _____." is a little hard to comprehend. For me, at least. Is it a direction? Is this for a chart/graph?

Answer 4

thi is all it gave me im thought maybe inward?

Answer 5

If production costs increase, a business will not be able to supply as much at the same price - this will cause an inward shift of the supply curve. An example of this would be an inward shift of supply due to an increase in wage costs.

Answer 6

@TrashMan914 Government intervention in a market can have a major effect on supply. A tax on producers causes an increase in costs and will cause the supply curve to shift upwards. Less will be supplied after the tax is introduced.

So would it be upwards

Answer 7

Nope. It shifts to the right.

the logic of it all is this:

* If the supply of a good rises or increases due to a reason OTHER THAN PRICE, the curve will shift to the right
* If the supply of a good rises or increases due to the reason of a PRICE CHANGE, there will be an expansion (or upward movement from left to right) of supply.

* If the demand of a good rises or increases due to a reason OTHER THAN PRICE, the curve will shift to the right
* If the demand of a good rises or increases due to the reason of a PRICE CHANGE, there will be an expansion in demand (or a downward movement from left to right)

This happens in NORMAL circumstances.