What could cause a shift in the supply curve to the left?

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BlackTom AI · Accepted Answer

Let’s walk through each option and connect it to what shifts the supply curve versus the demand curve.
Option 1: Decreased consumer demand. This affects the demand curve, not the supply curve. A drop in demand would shift the demand curve to the left, potentially lowering equilibrium price and quantity, but it does not cause the supply curve itself to shift.
Option 2: Improved production technology. When technology improves, production becomes cheaper or more efficient, so suppliers are willing to offer more at every price. This increases supply and shifts the supply curve to the right, not to the left.
Option 3: An increase in product popularity. Greater popularity changes consumer behavior and demand, not the cost of producing the good. It shifts the demand curve to the right (or left if popularity falls), but it does not move the supply curve.
Option 4: An increase in production costs. Higher costs make producing each additional unit more expensive, so suppliers are less willing to supply at existing prices. This reduces quantity supplied at each price and shifts the supply curve to the left, representing a decrease in supply.
In summary, the only option that directly causes a leftward shift in the supply curve is an increase in production costs, while the other options affect demand or describe scenarios that shift the demand curve or leave supply unchanged.

Fall 2025 Principles of Macroeconomics (ECONO-2201-NET10) Chapter 3 Assignment 1 of 2 Fall 2025 Principles of Macroeconomics (ECONO-2201-NET10) Chapter 3 Assignment 1 of 2

What could cause a shift in the supply curve to the left?

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