In the market for tacos,the factor that does NOT shift the supply curve to the left is:
A)an increase in the price of beef.
B)an increase in the wages of taco shop workers.
C)fewer taco shops.
D)a decrease in the price of tacos.

Question

Quizplus · Accepted Answer

A decrease in the price of tacos would not shift the supply curve to the left. In fact, it could potentially increase the quantity supplied if taco shops perceive that there is a larger demand at the lower price. In contrast, an increase in the price of beef (a key input in taco production) would increase production costs and shift the supply curve to the left. An increase in wages for taco shop workers would also increase production costs and shift the supply curve to the left. Fewer taco shops would decrease the number of available tacos in the market and shift the supply curve to the left.

In the Market for Tacos,the Factor That Does NOT Shift