Supply Curve Shift from Joint Production

Steps:

• Identify the shift direction: S1 to S2 is rightward, indicating increased supply at every price.
• Recall supply shifters: Changes in input costs, technology, or related goods' demand affect supply, not price.
• Evaluate options: A and D relate to costs or price (movement, not shift); B affects demand.
• Select C: Increased demand for a jointly supplied product (e.g., beef and hides) boosts this product's supply.

Why C is correct:

• In joint supply, products produced together (law of joint products) mean higher demand for one raises supply of both to maximize joint output.

Why the others are wrong:

• A: Higher production costs decrease supply, shifting curve left.
• B: Consumer income shifts demand curve, not supply.
• D: Price change causes movement along the supply curve, not a shift.

Final answer: C