If a producer were forced to absorb the cost of a spillover from the production of a good, this would likely cause the supply curve for the good to
A) shift out.
B) shift to the left.
C) shift to the right.
D) None of the above are correct.

Question

Quizplus · Accepted Answer

If a producer were forced to absorb the cost of a spillover from the production of a good, it would increase the producer's cost of production, which would cause the supply curve for the good to shift to the left, indicating that producers are willing to supply less of the good at any given price.

If a Producer Were Forced to Absorb the Cost of a Spillover