If the price of cotton used in making blue jeans increases, which of the following will occur?
A) There will be a movement along an unchanged supply curve for jeans.
B) The supply curve for jeans will shift rightward.
C) The supply curve for jeans will shift leftward.
D) There will be a rightward shift in the supply curve for jeans, followed by a movement along the supply curve.

Question

Quizplus · Accepted Answer

An increase in the price of cotton, a key input in making blue jeans, makes production more expensive, leading to a decrease in the supply of jeans. This is represented by a leftward shift in the supply curve.

If the Price of Cotton Used in Making Blue Jeans