Draw a supply curve, and assume it is the supply curve for processors. suppose the price of gold increases. gold is an input use
d in the production of processors. draw what happens to the supply curve for processors. use arrows and/or labels to clarify where necessary.
1 answer:
Explanation: When the price of gold an input used in the production of processors increases, it leads to a rise in the cost of producing processors. As a result of this, producers will cut down their production and decrease supply. The supply curve for processors will shift upward to the left from S1 to S2 leading to a rise in the price of processors from P1 to P2 and a fall in the quantity of processors being sold in the market from Q1 to Q2.
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