"Shoe Industry under Pressure Amid Rising Costs "
Rising costs have forced about 15 per cent of shoe manufacturers in a major south China industrial c to shut down or relocate in the past year... [the firms have] identified rising wages as a key factor be the closures and relocations from Dongguan...The problems in the footwear industry reflect broader affecting manufacturers across China's Pearl River Delta..."
HYPERLINK "http://www.ft.com/" www.ft.com, 2/26/200
Using an AS/AD framework to describe the events in the story, there would be a

Question

Quizplus · Accepted Answer

Rising costs, such as increased wages, lead to a leftward shift in the Short-Run Aggregate Supply (SAS) curve as production becomes more expensive, reducing the quantity of goods supplied at any given price level.

"Shoe Industry Under Pressure Amid Rising Costs