If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a

Question

Quizplus · Accepted Answer

The increase in the price of aluminum, a key input in bicycle production, makes it more costly to produce bicycles. This results in a decrease in the supply of bicycles, represented by a leftward shift of the supply curve. It does not directly affect the demand for bicycles, nor does it cause the supply curve to shift rightward.

If the Price of Aluminum Used to Make Bicycles Increases