Suppose the supply of Malaysian rubber decreases.If U.S.producers purchase this rubber as an input,in the United States,this would cause a

Question

Quizplus · Accepted Answer

A decrease in the supply of Malaysian rubber, a key input in production, would result in an increase in the price of rubber in the United States. As a result, the cost of production for U.S. producers would increase, leading to a leftward shift of the SRAS (Short-Run Aggregate Supply) curve. Therefore, the answer is D - leftward shift of the SRAS curve.

Suppose the Supply of Malaysian Rubber Decreases