If there are 1,000 rutabaga farms, all perfectly competitive, an increase in the price of fertiliser used for growing rutabagas will

Question

Quizplus · Accepted Answer

An increase in the price of fertilizer, a key input for growing rutabagas, raises the cost of production for farmers. This leads to a leftward shift in the supply curve of each farm, indicating a decrease in the quantity of rutabagas supplied at any given price, thus reducing the total quantity of rutabagas supplied in the market.

If There Are 1,000 Rutabaga Farms, All Perfectly Competitive, an Increase