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Question
which of these would have a negative impact on the supply of mechanical pencils? a an increase in employee productivity. b the increase in the cost of resources. c the company purchased faster technology. d receiving a government subsidy to cover cost of production
An increase in resource costs raises production costs. Higher production costs reduce the quantity producers are willing to supply at each price, negatively impacting supply. An increase in employee productivity and faster - technology enhance supply, and a government subsidy also helps increase supply.
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B. The increase in the cost of resources.