Question

question 6
1 pts
an increase in input prices will shift the...

demand curve to the right

demand curve to the left

supply curve to the right

supply curve to the left

Explanation:

To solve this, we analyze the impact of input price changes on supply/demand. Input prices (like raw materials, labor costs) affect production costs. An increase in input prices raises production costs for firms.

• Demand Curve: Demand is affected by factors like consumer income, preferences, or prices of related goods, not directly by input prices. So input price changes don't shift the demand curve. Thus, options about demand curve shifts (right/left) are incorrect.
• Supply Curve: Supply represents the quantity firms are willing to produce at each price. Higher input prices mean firms’ costs increase. For any given price, firms will supply less (since producing is now more expensive), so the supply curve shifts left (indicating a decrease in supply at all price levels).

Answer:

D. supply curve to the left