A decrease in the price of peanut butter will cause a leftward shift of the supply curve of peanut butter.

Question

Quizplus · Accepted Answer

A decrease in the price of peanut butter will not cause a shift in the supply curve of peanut butter. It may cause a movement along the existing supply curve, as suppliers may be willing to supply less peanut butter at a lower price, but it will not shift the entire curve. Supply is influenced by factors such as technology, input costs, and number of suppliers, which are not directly affected by changes in price.

A Decrease in the Price of Peanut Butter Will Cause