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Question
the cost for materials to make computer chips for cellphones increased. which of the following will happen? supply decrease and shift to the left supply decrease and shift to the right supply increase and shift to the left supply increase and shift to the right
When the cost of materials (an input cost) for making computer - chips for cellphones increases, producers face higher production costs. This reduces their profitability at each price level. As a result, producers are less willing to supply the same quantity at each price, leading to a decrease in supply. In a supply - demand graph, a decrease in supply is represented by a left - ward shift of the supply curve.
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Supply decrease and shift to the left