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Question
Which of the following does not cause shift of supply curve of a good?
Options
Price of input
Price of the good
Goods and Services Tax
Subsidy
Solution
Price of the good
Explanation:
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Price of the good does not cause a shift in the supply curve. Instead, it causes a movement along the supply curve. If the price of the good changes, the quantity supplied changes, but the supply curve does not shift.
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Factors that cause a shift in the supply curve include changes in the price of inputs, taxes like GST, subsidies, technology, and other external factors. These factors can increase or decrease the overall supply, shifting the supply curve to the right or left.
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