Question

Which of the following will cause the supply curve for shoes to shift to the right?


An increase in the price of socks, assuming that shoes and socks are complements

Option A,An increase in the price of socks, assuming that shoes and socks are complements

a

A decrease in the price of sandals, assuming that shoes and sandals are substitutes

Option B,A decrease in the price of sandals, assuming that shoes and sandals are substitutes

b

An increase in the wages of shoe workers

Option C,An increase in the wages of shoe workers

c

An increase in the number of firms producing shoes

Option D,An increase in the number of firms producing shoes

d

A decrease in the income of consumers, assuming that shoes are normal goods

Answer 1

Answer: Option D — An increase in the number of firms producing shoes.

Reason: Supply shifts when factors affecting production change (number of sellers, input costs, technology, taxes/subsidies, expectations). More firms increases market supply (rightward shift). The other options affect demand (prices of complements/substitutes, consumer income) or raise production costs (higher wages), which would not shift supply to the right.