Figure 3-2
-Refer to Figure 3-2.An increase in price of inputs would be represented by a movement from
A)A to B.
B)B to A.
C)S1 to S2.
D)S2 to S1.

Question

Figure 3-2 
-Refer to Figure 3-2.An increase in price of inputs would be represented by a movement from
A)A to B. 
B)B to A. 
C)S1 to S2. 
D)S2 to S1.

Quizplus · Accepted Answer

An increase in price of inputs would lead to an increase in the cost of production, causing a shift from S1 to S2, indicating a decrease in the quantity producers are willing to supply at each price level. Therefore, the correct choice is D, which represents a shift from S2 to S1.

Figure 3-2 -Refer to Figure 3-2.An Increase in Price of Inputs Would