Supply Curve Shifts from Non-Price Factors

Steps:

• Recall that the supply curve shows quantity supplied at different prices; shifts occur from changes in production costs, technology, or seller numbers.
• Identify shifters: input prices, technology, expectations, subsidies, and number of sellers in the industry.
• Evaluate each option: price changes cause movement along the curve, not shifts; non-price factors like industry size affect supply directly.
• Select the option that alters the number of rice producers, shifting the entire curve.

Why C is correct:

• A change in the size of the rice industry increases or decreases the number of sellers, shifting supply right (more supply) or left (less supply) per the law of supply.

Why the others are wrong:

• A: A change in rice price causes movement along the supply curve, not a shift.
• B: A change in meat price affects demand for rice as a substitute, not supply.
• D: A change in tastes shifts the demand curve for rice, not supply.

Final answer: C