Multiple Choice
Which of the following is most likely to shift the supply curve for pet grooming services leftward?
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3. The Market Forces of Supply and Demand
Shifts in the Supply Curve
Multiple Choice
Which of the following would most likely cause a vertical supply curve to shift to the left?
A
A decrease in the availability of a key input
B
An increase in consumer income
C
A technological improvement in production
D
A reduction in government-imposed production taxes
Verified step by step guidance1
Understand that a vertical supply curve represents a perfectly inelastic supply, meaning quantity supplied does not change regardless of price.
Recall that a shift to the left in the supply curve indicates a decrease in supply at every price level.
Analyze each option to see how it affects supply: an increase in consumer income affects demand, not supply; a technological improvement typically increases supply, shifting the curve right; a reduction in production taxes lowers costs, increasing supply and shifting right.
Focus on the option 'a decrease in the availability of a key input' which raises production costs or limits production capacity, causing supply to decrease and the supply curve to shift left.
Conclude that a decrease in the availability of a key input is the factor that would most likely cause the vertical supply curve to shift to the left.
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