Which of the following are factors that can cause a shift in supply?
A. Demand decreases and competition increases
B. Demand increases and competition decreases
C. Less availability of products and increasing market share
D. Production increases and establishment of new companies
Answer (3)
A major increase in production due to some market factor as well as the establishment of new companies could potentially lead to a shift in the supply curve for a good. The other answers would not create a shift in the supply curve.
After a sudden cutoff of coffee shipments, buyers are demanding more coffee than is available at current prices. What is this market experiencing
The best option that indicates a factor causing a shift in supply is option D, which mentions production increases and the establishment of new companies. These factors can lead to an increase in the overall supply in a market. Options A, B, and C do not directly relate to a shift in the supply curve.
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