Final answer:
The correct answer is D. An increase in input prices generally results in a reduction of supply, as it becomes more expensive to produce goods. This is traditionally shown in economic models as a leftward shift of the supply curve.
Step-by-step explanation:
If there is an increase in input prices, we expect that the supply will reduce. When input costs rise, it becomes more expensive to produce goods for suppliers. Hence, as a general economic principle, an increase in the costs of production, which includes an increase in input prices, leads to a decrease in supply. This can be represented on a supply curve as a leftward shift. When input prices are high, producers may not be able to supply the same quantity of goods at the same prices, which prompts a decrease in supply.
For instance, if the price of seeds for growing wheat increases, farmers may produce less wheat because it costs more to plant an acre. Likewise, when technology that reduces the cost of production becomes available, firms can supply more at any given price, shifting the supply curve to the right. However, an increase in input costs would have the opposite effect, causing a shift to the left in the supply curve.