A right, outward shift of a supply curve for avocados might be caused by _____.

Study for the VirtualSC Economics Honors Exam. Utilize flashcards and multiple-choice questions, each with hints and explanations. Get prepared for your exam!

A rightward shift in the supply curve indicates that producers are willing and able to supply more of a good at every price level. One primary reason this can occur is due to improvements in production techniques or technology. In the case of avocados, an improvement in picking techniques makes it easier, more efficient, or less costly for producers to harvest avocados. As a result, producers can increase their output without a proportional increase in costs, leading to a greater supply available in the market.

In contrast, a decrease in consumer preference would likely lead to a decrease in demand rather than an increase in supply. Increased avocado prices might motivate suppliers to produce more; however, it wouldn’t shift the supply curve to the right—it could simply lead to movement along the existing supply curve. Higher demand for avocados would also not cause a rightward shift in the supply curve; instead, it could raise prices and increase quantity supplied, but again, the actual supply curve would remain unaffected by demand shifts. Thus, an improvement in harvesting techniques directly impacts the supply capabilities of avocado producers, making it the correct reason for a rightward shift in the supply curve.

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