If the price of the cotton used in making trousers increases, then the supply curve for trousers will shift to the left.

Question

Quizplus · Accepted Answer

If the price of a key input in the production process, such as cotton, rises, it will increase the cost of producing trousers. As a result, suppliers will be less motivated to produce the same quantity of trousers as before, and the supply curve for trousers will shift to the left.

If the Price of the Cotton Used in Making Trousers