Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

if the price of one of the factors of production used to produce textil…

Question

if the price of one of the factors of production used to produce textiles increases, what will happen to the supply curve of the textiles? a movement upward and along the supply curve a shift of the supply curve inward and to the left a movement down and along the supply curve a shift of the supply curve outward and to the right

Explanation:

Brief Explanations

When the price of a factor of production (input) for textiles rises, the production cost for textiles increases. This makes producers less willing or able to supply the same quantity of textiles at every given market price, which causes the entire supply curve to shift, rather than a movement along the existing curve. A decrease in supply is represented by a shift inward and to the left.

Answer:

a shift of the supply curve inward and to the left