Everything else held constant,an increase in the cost of production ________ aggregate ________.
A)increases;demand
B)decreases;demand
C)increases;supply
D)decreases;supply

Question

Quizplus · Accepted Answer

An increase in the cost of production would lead to a decrease in the supply of goods, as it becomes more expensive to produce them. This would result in a leftward shift of the supply curve, indicating a decrease in supply.

Everything Else Held Constant,an Increase in the Cost of Production