Use the following to answer questions: Figure: Supply Shift -(Figure: Supply Shift) What would cause the supply curve to shift from S₁ to S₂ as shown in the diagram? A) an increase in taxes on firms' output B) an increase in the price of inputs used to produce the output C) a decrease in the number of firms that produce the output D) a decrease in the wages paid to union workers who produce the output

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A decrease in wages paid to workers reduces production costs, allowing firms to supply more at each price, shifting the supply curve to the right from S1 to S2.

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