Figure 4.5
-Figure 4.5 illustrates the supply of guitars. An increase in the price of rosewood, which is used to make guitars, would most likely cause a movement from:

Question

Quizplus · Accepted Answer

An increase in the price of rosewood, which is used to make guitars, would increase the cost of production for guitar manufacturers. This would lead to a decrease in the supply of guitars, as manufacturers would be less willing to produce guitars at the same price. This would cause a movement from point B to point C on the supply curve.

Figure 4.5 -Figure 4.5 Illustrates the Supply of Guitars. an Increase in Increase