Given the price, if the cost of production increases because of higher price of raw materials, the supply
A)Decrease
B)Increase
C)Remains the same
D)Any of the above

Question

Quizplus · Accepted Answer

When the cost of production increases due to higher prices of raw materials, suppliers are less willing or able to supply the same quantity at the previous price, leading to a decrease in supply.

Given the Price, If the Cost of Production Increases Because