The supply curve for a good will shift to the left if:

Question

Quizplus · Accepted Answer

An increase in input price will increase the cost of production, reducing the incentive for suppliers to produce the good, and hence shifting the supply curve to the left. A decrease in price for a substitute (B) would increase the incentive to produce the substitute good, but it may have no effect on the supply of the original good. Choice A is unlikely as producers would produce more if they expected prices to fall soon. Choice D is incorrect as increasing the number of suppliers would increase supply, not reduce it. Choice E is incorrect as a decrease in the price of the good itself would not shift the supply curve.

The Supply Curve for a Good Will Shift to the Left