A shift in the supply curve of bicycles resulting from higher steel prices will lead to:
A)higher prices of bicycles.
B)lower prices of bicycles.
C)a shift in the demand curve for bicycles.
D)a larger output of bicycles.

Question

A shift in the supply curve of bicycles resulting from higher steel prices will lead to:
A)​higher prices of bicycles.
B)​lower prices of bicycles.
C)​a shift in the demand curve for bicycles.
D)​a larger output of bicycles.

Quizplus · Accepted Answer

An increase in steel prices will increase the costs of production for bicycle manufacturers, which will shift the supply curve to the left. This means that at any given price, the quantity of bicycles supplied will decrease. As a result, the market price of bicycles will increase, leading to higher prices for consumers.

A Shift in the Supply Curve of Bicycles Resulting from Higher