Final answer:
input prices decrease, profits increase, the supply curve shifts to the right, as this reflects standard economic principles that a reduction in input costs increases profitability and supply.
Step-by-step explanation:
The correct cause and effect event for the seller in the given options is c. input prices decrease, profits increase, the supply curve shifts to the right. This is because a decrease in input prices typically leads to higher profits for the seller and allows them to supply more at every price level, hence the supply curve shifts to the right. In contrast to other options, this sequence directly correlates with the principles of supply in economics.
When input prices decrease, production costs fall, which can lead to increased profitability assuming the product price remains constant or does not fall proportionately. Increased profits provide a greater incentive for sellers to supply more of the product. Therefore, this scenario represents a cause (decrease in input prices) leading to effects (increase in profits and an outward shift of the supply curve).
An improvement in technology that reduces the cost of production will cause an increase in supply. This can be shown as a rightward shift in the supply curve. In this case, option d. 'technology improves, profits decrease, supply curve shifts to the left' does not represent a cause and effect event for the seller. The correct answer is option a. 'input prices increase, profits increase, the supply curve shifts to the left' as an increase in input prices will lead to higher production costs and lower profits for the seller, causing a leftward shift of the supply curve.