Some producers are chatting.Which one of the following quotations refers to a leftward shift of the supply curve?
A)"Wage increases have forced us to raise our prices."
B)"Our new,sophisticated equipment will enable us to undercut our competitors."
C)"Raw material prices have sky-rocketed;we will have to pass the cost on to our customers."
D)"We anticipate a big increase in demand.Our product price should rise,so we are planning for an increase in output."
E)Both A and C

Question

Quizplus · Accepted Answer

A leftward shift in the supply curve indicates a decrease in supply, often due to higher production costs. Both A and C mention factors (wage increases and higher raw material prices) that would increase production costs, leading to a decrease in supply.

Some Producers Are Chatting