Question

Resource X is necessary to the production of good Y. If the price of resource X rises, the _____________ curve for good Y will shift ____________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y.

Answer 1

An increase in the price of resource X will cause the supply curve for good Y to shift leftward, leading to an increase in the equilibrium price and a decrease in the equilibrium quantity of good Y.

Step-by-step explanation:

If the price of resource X, being vital to the production of good Y, increases, the supply curve for good Y will shift leftward. This is a result of the increased production costs discouraging firms from manufacturing the same quantity of good Y at the same price, thus causing a decrease in supply. This leftward shift in supply will lead to a rise in the equilibrium price of good Y, and a decrease in the equilibrium quantity of good Y.

Learn more about Supply and Demand

Answer 2

Supply

To the left or inward

Increase

Decrease

Step-by-step explanation:

If the cost of a resource needed in production increases, cost of production increases and this discourages production. Production would decrease and supply would decrease. This would shift the supply curve inward. When the supply curve shifts inward, equilibrium price rises and equilibrium quantity falls.

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