Answer the question on the basis of the following information.An economy is employing 2 units of capital,5 units of raw materials,and 8 units of labor to produce its total output of 640 units.Each unit of capital costs $10;each unit of raw materials,$4;and each unit of labor,$3. Refer to the information.If the per-unit price of raw materials rises from $4 to $8 and all else remains constant,the aggregate:
A) supply curve would shift to the left.
B) supply curve would shift to the right.
C) demand curve would shift to the left.
D) demand curve would shift to the right.

Question

Quizplus · Accepted Answer

If the per-unit price of raw materials rises, the cost of production will increase, leading to a decrease in the quantity supplied. This will cause the supply curve to shift to the left.

Answer the Question on the Basis of the Following Information