An Increase in Input Prices Causes

question 145

Multiple Choice

An increase in input prices causes:

• A) the market supply to shift inward, driving the equilibrium price downward.
• B) the market supply to shift outward, leading to a higher equilibrium price.
• C) the market supply to shift inward, driving the equilibrium price higher.
• D) the supply curve to decrease and the demand curve to decrease.

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