Use the following to answer questions :
Figure 3-6
-Given the supply and demand curves drawn in Figure 3-6, an increase in the cost of an input can be expected to push the market clearing price up and the market clearing quantity down.

Question

Use the following to answer questions :
Figure 3-6 
-Given the supply and demand curves drawn in Figure 3-6, an increase in the cost of an input can be expected to push the market clearing price up and the market clearing quantity down.

Quizplus · Accepted Answer

An increase in the cost of an input will cause a shift in the supply curve to the left, resulting in a higher market clearing price and a lower market clearing quantity. This is reflected in the given statement, so the answer is true.

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