Which one of the following will shift the supply curve of good X leftward?
A)a decrease in the wages of workers employed to produce X
B)an increase in the cost of machinery used to produce X
C)a technological change that increases production of X
D)a situation where the quantity of X demanded exceeds the quantity of X supplied
E)a decrease in the cost of capital used to produce X

Question

Quizplus · Accepted Answer

An increase in the cost of machinery used to produce X will increase the cost of production, which means that producers will have to sell their product at a higher price to cover their costs. As a result, they will produce less of good X at every price level leading to a leftward shift of the supply curve.

Which One of the Following Will Shift the Supply Curve