An increase in production costs shifts the supply curve leftward.

Name: An increase in production costs shifts the supply curve leftward.
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Question

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An increase in production costs means that it will cost more for suppliers to produce a certain quantity of goods or services. Therefore, suppliers will be willing to produce and supply less at every given price level. This will result in a leftward shift of the supply curve.

An Increase in Production Costs Shifts the Supply Curve Leftward