What best explains a shift in market supply curve to the right?
A). An advertising campaign is successful in promoting the good
B). A new technique makes it cheaper to produce the good
C). The government introduces a tax on the good
D). The price of raw materials increases
A new technique makes it cheaper to produce the good
A new technique makes it cheaper to produce the good best explains a shift in market supply curve to the right. A rightward shift in the supply curve, say from a new production technology, leads to a lower equilibrium price and a greater quantity.