-Refer to the above figure. Which diagram shows the effect on the market of cellphones when the price of plastic has increased?
A) graph C
B) graph D
C) neither graph
D) both graphs

Question

-Refer to the above figure. Which diagram shows the effect on the market of cellphones when the price of plastic has increased?
A) graph C 
B) graph D 
C) neither graph 
D) both graphs

Quizplus · Accepted Answer

An increase in the price of plastic, a production input for cellphones, would likely lead to an increase in the production costs of cellphones. This would be represented by a leftward shift in the supply curve, indicating a decrease in supply at any given price. Neither of the provided options (without visual reference) accurately describes this scenario, as they might suggest changes in demand or other supply shifts not directly related to an increase in production costs.

-Refer to the Above Figure