Figure 3.3 Alt text for Figure 3.3: In figure 3.3, a graph of the effect of an increase in the price of inputs on the supply curve.
Long description for Figure 3.3: The x-axis is labelled, Quantity, and the y-axis is labelled, Price.Curve Supply, S1, is a straight line which slopes up from the bottom left corner to the top right corner.2 points, A and B, are marked in the middle of curve S1.Curve S2 follows the same slope as curve S1, but is plotted to the right.A right pointing arrow indicates the change from curve S1 to curve S2.
-Refer to Figure 3.3.An increase in price of inputs would be represented by a movement from

Question

Figure 3.3

Alt text for Figure 3.3: In figure 3.3, a graph of the effect of an increase in the price of inputs on the supply curve.
Long description for Figure 3.3: The x-axis is labelled, Quantity, and the y-axis is labelled, Price.Curve Supply, S1, is a straight line which slopes up from the bottom left corner to the top right corner.2 points, A and B, are marked in the middle of curve S1.Curve S2 follows the same slope as curve S1, but is plotted to the right.A right pointing arrow indicates the change from curve S1 to curve S2.
-Refer to Figure 3.3.An increase in price of inputs would be represented by a movement from

Quizplus · Accepted Answer

An increase in the price of inputs causes a decrease in supply, resulting in a shift of the supply curve to the left. This shift is represented by the movement from point B to point A, which corresponds to the new supply curve S2. Therefore, the correct choice is D, which indicates the shift from S₂ to S₁.

Figure 33 Alt Text for Figure 3