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Which of the following would cause a leftward shift in the supply curve for car washes?

A. An increase in the number of cars in the city
B. A decrease in taxes on car washes
C. An increase in the price of car washing equipment
D. A decrease in the price of water

User Cshah
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1 Answer

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Final answer:

An increase in the price of car washing equipment would cause a leftward shift in the supply curve for car washes, as it would raise production costs, leading providers to supply less at all price levels.

Step-by-step explanation:

To determine which factor would cause a leftward shift in the supply curve for car washes, we need to consider how various changes affect the supply. A leftward shift implies that less of a service is provided at every price level. Looking at the options provided:

  • An increase in the number of cars in the city (Option A) would likely lead to an increased demand for car washes, not a shift in the supply curve.
  • A decrease in taxes on car washes (Option B) would reduce costs for providers, which typically leads to a rightward shift in the supply curve.
  • An increase in the price of car washing equipment (Option C) represents an increase in production costs, which would reduce the profitability of car washes at current prices, leading to a leftward shift in the supply curve of car washes as providers are willing to supply less at every price level.
  • A decrease in the price of water (Option D) would lower a key cost, thus likely shifting the supply curve to the right, as it would be cheaper to provide car washes.

Therefore, the correct answer is Option C: An increase in the price of car washing equipment.

User Adin Sijamija
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