Economics 0455 · IGCSE · Supply

Supply — practice question

A producer of tinned beans introduces mechanisation to its assembly line. As a result, output rises by $30\%$ and labour falls by $20\%$. How and why will this change supply curve $S$?

  • A$S$ will move to the left due to an increase in average costs.
  • B$S$ will move to the left due to an increase in the price of tinned beans.
  • C$S$ will move to the right due to an increase in consumer demand.
  • D$S$ will move to the right due to an increase in productivity.

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