What is the effect of a rise in production costs on the supply curve?

Show Answers

Cause the demand curve to shift outwardCause the demand curve to shift inwardCause the supply curve to shift outward, increasing quantity supplied at every priceCause the supply curve to shift inward, reducing quantity supplied at every price

Explanation

When production costs increase, suppliers are less willing or able to provide the same quantity at each price level, resulting in a leftward (inward) shift of the supply curve. Demand curves are not directly affected by changes in production costs.