An increase in production costs will cause the supply curve to:

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Multiple Choice

An increase in production costs will cause the supply curve to:

Explanation:
An increase in production costs makes producing each unit less profitable, so producers are willing to supply less at every possible price. That causes the entire supply curve to shift to the left, indicating a decrease in supply. Moving along the curve would happen if the market price changed while costs stayed the same, not because costs rose. A shift to the right would imply more supply (an increase in supply), which would occur if costs fell or other supply conditions improved. Being unaffected would require no change in the factors that influence supply.

An increase in production costs makes producing each unit less profitable, so producers are willing to supply less at every possible price. That causes the entire supply curve to shift to the left, indicating a decrease in supply. Moving along the curve would happen if the market price changed while costs stayed the same, not because costs rose. A shift to the right would imply more supply (an increase in supply), which would occur if costs fell or other supply conditions improved. Being unaffected would require no change in the factors that influence supply.

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