Explain any two causes of a 'rightward' shift of supply curve.

1.	Explain any two causes of a 'rightward' shift of supply curve.
Answer» Causes of rightward shift of supply curve are: (a) Use of improved technology: It reduces cost. Price remaining unchanged, profit rise. This leads to shift of supply curve to the right. (b) Fall in prices of inputs: It reduces cost. Price remaining unchanged, profits rise. This leads to shift of supply curve to the right.

Answer»

Causes of rightward shift of supply curve are:

(a) Use of improved technology: It reduces cost. Price remaining unchanged, profit rise. This leads to shift of supply curve to the right.

(b) Fall in prices of inputs: It reduces cost. Price remaining unchanged, profits rise. This leads to shift of supply curve to the right.

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