Refer to the accompanying figure. Suppose the solid line represents the current supply of Star Wars action figures. If the price of the plastic used to make action figures rises, current supply will:
A)shift to S(B).
B)not change because a change in the price of plastic will not affect the demand for action figures.
C)shift to S(A).
D)not change; only the quantity supplied will change.

Question

Refer to the accompanying figure. Suppose the solid line represents the current supply of Star Wars action figures. If the price of the plastic used to make action figures rises, current supply will: 
A)shift to S(B).
B)not change because a change in the price of plastic will not affect the demand for action figures.
C)shift to S(A). 
D)not change; only the quantity supplied will change.

Quizplus · Accepted Answer

An increase in input prices will cause supply to shift leftward.

Refer to the Accompanying Figure