Question

Which of the following events would cause the supply curve to increase from Upper S 1 to Upper S 3​? A. Higher expected future prices. B. Upper A decrease in the number of firms in the market. C. An increase in the price of inputs. D. Upper A decrease in the price of inputs.

Answer 1

D. A decrease in the price of inputs.

Step-by-step explanation:

As a result of the decrease in the price of inputs, suppliers will be encouraged to produce more quantities of their products due to the reduced costs of production. As a result, there will be an increase in supply and a corresponding increase in the supply curve from S 1 to upper S 3. Therefore, option D is the correct answer.