passwella.
Menu

JAMB Economics 2007 Question 21

Question 21

Theory of Supply

An increase in the marginal cost of production causes

  1. A.an upward movement along the supply curve
  2. B.a downward movement along the supply curve
  3. C.a leftward shift of the supply curve
  4. D.a rightward shift of the supply curve
Show the answer and explanation

Answer: C (a leftward shift of the supply curve)

Explanation

Higher costs mean less is offered at every price, so the supply curve shifts to the left.