Question

Ecofriendly bricks are made from recycled waste. To encourage the producers, Government plans to subsidise electricity and water supply. In this scenario the supply curve of the ecofriendly bricks in market ______.

Options

• Shifts rightward

• Shifts leftward

• Moves downward

• Moves upward

Answer 1

Ecofriendly bricks are made from recycled waste. To encourage the producers, Government plans to subsidise electricity and water supply. In this scenario the supply curve of the ecofriendly bricks in market shifts rightward.

Explanation:

The government’s electricity and water subsidies directly reduce the cost of producing eco-friendly bricks, increasing manufacturer profit margins. This financial respite encourages manufacturers to make and sell more bricks, resulting in a substantial rightward shift of the entire supply curve at all existing price points.