The model of profit-maximizing production decisions suggests that if fertilizer is an important input to rice production,then an increase in the fertilizer price _________ the quantity of rice that farmers _______ to the market at any price,shifting the local rice supply schedule to the ________.

Question

Quizplus · Accepted Answer

An increase in input prices (fertilizer) would increase production costs for farmers, reducing their profit margins. As a result, they would produce less rice, shifting the local rice supply schedule to the left. This is reflected in choice A.

The Model of Profit-Maximizing Production Decisions Suggests That If Fertilizer