Question

If the price of cotton used in making blue jeans increases, which of the following will occur? a. The supply curve for jeans will shift leftward. b. The supply curve for jeans will shift rightward. c. There will be a movement along an unchanged supply curve for jeans.d. There will be a rightward shift in the supply curve for jeans, followed by a movement along the supply curve.

Answer 1

Answer:

a. The supply curve for jeans will shift leftward.

Explanation:

If the price of cotton used in making blue jeans increases, The cost of production would increase. This would discourage production and supply would fall. The fall in supply would shift the supply curve to the left.

Only a change in the price of blue jeans would lead to a movement along the demand curve for blue jeans.

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