QuestionJuly 2, 2025

Which of the following would explain a leftward shift of the supply curve? An increase in resource prices Advancement in production technology An increase in number of sellers An increase in consumer tastes/preferences

Which of the following would explain a leftward shift of the supply curve? An increase in resource prices Advancement in production technology An increase in number of sellers An increase in consumer tastes/preferences
Which of the following would explain a leftward shift of the supply curve?
An increase in resource prices
Advancement in production technology
An increase in number of sellers
An increase in consumer tastes/preferences

Solution
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Answer

An increase in resource prices Explanation 1. Identify factors affecting supply A leftward shift in the supply curve indicates a decrease in supply. Factors that can cause this include increased production costs, such as higher resource prices. 2. Analyze each option - **Increase in resource prices**: Raises production costs, reducing supply. - **Advancement in production technology**: Typically increases supply by making production more efficient. - **Increase in number of sellers**: Increases market supply. - **Increase in consumer tastes/preferences**: Affects demand, not supply.

Explanation

1. Identify factors affecting supply<br /> A leftward shift in the supply curve indicates a decrease in supply. Factors that can cause this include increased production costs, such as higher resource prices.<br /><br />2. Analyze each option<br /> - **Increase in resource prices**: Raises production costs, reducing supply.<br /> - **Advancement in production technology**: Typically increases supply by making production more efficient.<br /> - **Increase in number of sellers**: Increases market supply.<br /> - **Increase in consumer tastes/preferences**: Affects demand, not supply.
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