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Question
With price being same an increase in the price of inputs will lead to ______ in the supply curve.
Options
Upward movement
Rightward shift
Downward movement
Leftward shift
Solution
With price being same an increase in the price of inputs will lead to Leftward shift in the supply curve.
Explanation: Given the same price, a rise in input costs will cause the supply curve to shift to the left due to higher costs, reduced profits, causing companies to create and supply less at the fixed rates.
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