Question

changes in supply
sample supply curve
which events could cause the change in supply shown on this graph? choose two correct answers.
a natural disaster causes production to drop.
a new company joins the marketplace.
a company begins to produce more goods.
a producer goes out of business.
ⓘ this question requires at least 2 answers.

Explanation:

The graph shows a leftward shift of the supply curve, which means a decrease in overall supply (less quantity supplied at every price level).

1. A natural disaster reducing production will decrease total market supply, shifting the curve left.
2. A producer going out of business reduces the number of suppliers, decreasing total market supply and shifting the curve left.

A new company joining or a company producing more would increase supply, shifting the curve right.

Answer:

• A natural disaster causes production to drop.
• A producer goes out of business.