Question

Other factors being unchanged, the supply curve for eggs will shift downward and to the right if:

A) a virus spreads through poultry farms through the country and kills millions of chickens.

B) new research establishes that cholesterol, found in egg yolks, is found to cause heart disease.

C) the price of chicken feed falls.

D) the government introduces a new tax on poultry suppliers.

E) the average income level in the country falls due to a recession.

Answer 1

A.) A virus spreads through poultry farms through the country and kills millions of chickens.

The rightward shift occurs in supply curve when the quantity of supplied commodity increases at same price due to favorable changes in non-price factors of production of the commodity.

Reasons for rightward shift of supply curve::

• Improvement in technology
• Decrease in tax
• Decrease in cost of factor of production
• Seller’s expectation of fall in price in future due to any unseen forecast or issue for decrease in price.