Exhibit 4-3 Supply and demand curves

-In Exhibit 4-3,which of the following might cause a shift from S₂ to S₁?

Name: Exhibit 4-3 Supply and demand curves -In Exhibit 4-3,which of the following might cause a shift from S₂ to S₁?
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Question

Exhibit 4-3 Supply and demand curves
 
-In Exhibit 4-3,which of the following might cause a shift from S₂ to S₁?

Quizplus · Accepted Answer

A decrease in input prices would decrease the cost of production, which would lead to an increase in the quantity supplied at every price level. This would shift the supply curve from S₂ to S₁. None of the other options would directly affect the supply curve.

Exhibit 4-3 Supply and Demand Curves