-In the above figure,an increase in cost of the cheese used to produce pizza
A) shifts the supply curve from S to S1.
B) shifts the supply curve from S to S2.
C) results in a movement from point a to point b.
D) results in a movement from point b to point a.
E) has no effect.

Question

-In the above figure,an increase in cost of the cheese used to produce pizza
A) shifts the supply curve from S to S1. 
B) shifts the supply curve from S to S2. 
C) results in a movement from point a to point b. 
D) results in a movement from point b to point a. 
E) has no effect.

Quizplus · Accepted Answer

An increase in the cost of cheese, a key input in pizza production, would decrease the supply of pizza, shifting the supply curve to the left from S to S1.

-In the Above Figure,an Increase in Cost of the Cheese