Figure 3-2 -Refer to Figure 3-2.An increase in the price of inputs would be represented by a movement from A) A to B. B) B to A. C) S₁ to S₂. D) S₂ to S₁.

Question

Quizplus · Accepted Answer

An increase in the price of inputs will result in a decrease in supply. This is represented by a shift of the supply curve to the left, from S₂ to S₁. Therefore, the correct choice is D.

Figure 3-2 -Refer to Figure 3-2.An Increase in the Price of Inputs