Suppose a factory recently removed robots from its production line, decreasing productivity. This will likely cause a:
A) rightward shift of the supply curve.
B) leftward shift of the supply curve.
C) downward shift of the supply curve.
D) movement up along the supply curve.

Question

Quizplus · Accepted Answer

Removing robots from the production line will decrease productivity, leading to an increase in the cost of production. This means that the supply curve will shift leftward, indicating a decrease in the quantity supplied at any given price level.

Suppose a Factory Recently Removed Robots from Its Production Line