An increase in the price of inputs will cause the supply curve for a product to shift to the right.

Question

Quizplus · Accepted Answer

An increase in the price of inputs will cause the cost of production to increase, meaning that suppliers will need to sell their products at a higher price to maintain profitability. This will result in a leftward shift of the supply curve, as the quantity supplied will decrease at every given price level.

An Increase in the Price of Inputs Will Cause the Supply