FIGURE 3-6
-Refer to Figure 3-6.A shift in the supply curve from S₂ to S₁ might be caused by

Question

FIGURE 3-6 -Refer to Figure 3-6.A shift in the supply curve from S₂ to S₁ might be caused by

Quizplus · Accepted Answer

A shift in the supply curve to the left (from S₂ to S₁) indicates a decrease in the quantity of good X supplied at every price level. A rise in production costs would decrease the profitability of producing good X, forcing suppliers to increase their prices or decrease their supply, resulting in a leftward shift of the supply curve.

FIGURE 3-6 -Refer to Figure 3-6.A Shift in the Supply Curve from Curve