Read the statement below carefully, and decide whether it is true or false. And then EXPLAIN...
Read the statement below carefully, and decide whether it is true or false. And then EXPLAIN your answer (whether “true “ or “false”).
If input prices increase, the supply curve for cheese will shift to the right.
Homework Answers
Statement - If input prices increase, the supply curve for cheese will shift to the right.
Answer - False
Explanation - With an increase in the input price, the cost of production for cheese goes up as it is a dependent variable. As per the supply demand curve, as the cost of production which then in effect is the cost of supply as well, the supply curve shifts to the left as the quantity supplied reduces.
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