Figure 3-2

-Refer to Figure 3-2.An increase in price of inputs would be represented by a movement from
A)A to B.
B)B to A.
C)S₁ to S₂.
D)S₂ to S₁.

Name: Figure 3-2 -Refer to Figure 3-2.An increase in price of inputs would be represented by a movement from A)A to B. B)B to A. C)S₁ to S₂. D)S₂ to S₁.
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Question

Figure 3-2
 
-Refer to Figure 3-2.An increase in price of inputs would be represented by a movement from
A)A to B. 
B)B to A. 
C)S₁ to S₂. 
D)S₂ to S₁.

Quizplus · Accepted Answer

An increase in price of inputs would result in a higher cost of production, causing a decrease in supply. Therefore, the supply curve would shift leftward, from S₂ to S₁.

Figure 3-2 -Refer to Figure 3-2.An Increase in Price of Inputs Would