use the graph to answer the question that follows. which of the following could explain the shift from s1 to…

use the graph to answer the question that follows. which of the following could explain the shift from s1 to s2? the supplier began to produce a more profitable good instead. innovative technology has caused resource costs to decrease. the cost of a necessary resource in producing the good increased. two suppliers, that were major competitors, went out of business.

use the graph to answer the question that follows. which of the following could explain the shift from s1 to s2? the supplier began to produce a more profitable good instead. innovative technology has caused resource costs to decrease. the cost of a necessary resource in producing the good increased. two suppliers, that were major competitors, went out of business.

Answer

Brief Explanations:

A shift from S1 to S2 represents an increase in supply. When innovative technology causes resource costs to decrease, producers can produce more at each price level, leading to an increase in supply. If a supplier switches to a more profitable good, supply of the original good decreases. An increase in the cost of a necessary resource reduces supply. Competitors going out of business reduces overall supply in the market.

Answer:

Innovative technology has caused resource costs to decrease.