If producers must obtain higher prices than before to produce a given level of output, then the following has occurred.

Name: If producers must obtain higher prices than before to produce a given level of output, then the following has occurred.
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Question

Quizplus · Accepted Answer

This situation indicates that the cost of production has increased, which would decrease the willingness and ability of producers to supply the same quantity at the previous price. Therefore, there has been a decrease in supply.

If Producers Must Obtain Higher Prices Than Before to Produce