Question

What will happen if the price of one of the resources used to produce a good increases? a. The demand curve for that good will shift to the left. b. The demand curve for that good will shift to the right. c. The supply curve for that good will shift to the left. d. The supply curve for that good will shift to the right.

Answer 1

. The supply curve for that good will shift to the left.

Step-by-step explanation:

A shift in the supply curve arises when suppliers increase or decrease production. A shift in the supply curve is a result of a change in supply. An increase in supply results in the supply curve shifting to the right, While a decrease makes it shift to the left.

Factors that cause suppliers to reduce production makes the supply curve to shift to the left or inwards. Examples of such factors include an increase in taxation, civil unrest, or changes in technology.

An increase in the price of raw material will make production more challenging for suppliers. The output from suppliers will decrease, causing the supply curve to shift to the left.