A increase in the cost of an input will cause which of the following:a. an increase in supply and a shift to the right of the supply curve. b. an increase in supply and a shift to the left of the supply curve. c. a decrease in supply and a shift to the right of the supply curve. d. a decrease in supply and a shift to the left of the supply curve.

Question

Jeffrey Wilkinson

Business

2 February, 05:42

A increase in the cost of an input will cause which of the following:a. an increase in supply and a shift to the right of the supply curve. b. an increase in supply and a shift to the left of the supply curve. c. a decrease in supply and a shift to the right of the supply curve. d. a decrease in supply and a shift to the left of the supply curve.

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Answers (1)

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Lailah Garrison · Answer 1

D. A decrease in supply and a shift to the left of the supply curve

Explanation:

An increase in the cost of an input is an increase in the total cost of production of a good or service. If for producers is more expensive to produce, they will produce less, and the result is a decrease in the supply of that good or service. In the Demand and Supply curve, for each price there will be less quantity supplied. This looks as a shift to the left of the supply curve.