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 the price of substitutes in production 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 the price of substitutes in production would be represented by a movement from

Quizplus · Accepted Answer

An increase in the price of inputs would lead to a decrease in supply. This is represented by a shift of the supply curve to the left. In Figure 3.3, curve S1 represents the original supply curve while curve S2 represents the new supply curve after the increase in the price of inputs. The movement would be from point B to point A, indicating a decrease in quantity supplied at every price level. Therefore, the correct choice is D, which represents the shift from S1 to S2.

Figure 33 Alt Text for Figure 3