21. When the cost of production increases, the supply curve shifts to the left:

Question

BlackTom AI · Accepted Answer

The question asks about the relationship between production costs and the position of the supply curve.
Option 1: True. When the cost of production rises, firms face higher expenses. To maintain profitability, they reduce the quantity supplied at each price, or they may not be able to supply as much at existing prices. This results in the entire supply curve shifting leftward, indicating a decrease in supply.
Option 2: False. If production costs increase, the supply curve does not shift to the right. A rightward shift would indicate an increase in supply at each price, which would occur if costs fell, technology improved, or other factors made production cheaper. Since higher costs do the opposite, this option misstates the effect on supply.

25FAL-ECO-8-48630 Midterm Exam [ Thu, 10/16 by 11:59pm] MODULES[1 TO 5]

21. When the cost of production increases, the supply curve shifts to the left:

View Explanation

Log in for full answers

Similar Questions

The market supply curve indicates the

A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of:

A supply curve is a graphical illustration of the relationship between price, shown on the vertical axis, and ____________, shown on the horizontal axis.

A change in price of a good or service typically causes ___________________________ for that specific good or service.

A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the __________________ .

When __________________, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right.

If new manufacturers enter the computer industry, then (ceteris paribus):

但几乎所有供给曲线都有一个基本相似之处：它们的斜率都是 _______________。

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler