Question

Other things equal, if the price of a key resource used to produce product X rises, the:

Answers:
A.
supply curve for X will shift to the right.

B.
demand curve for X will shift to the right.

C.
supply curve for X will shift to the left.

D.
demand curve for X will shift to the left.

Answer 1

If the price of a key resource used to produce product X rises, the supply curve for X will shift to the left.

Step-by-step explanation:

When the price of a key resource used to produce product X rises, it will lead to an increase in production costs. This increase in production costs will cause the supply curve for X to shift to the left (option C).