A leftward shift of a product supply curve might be caused by:


4. A leftward shift of a product supply curve might be caused by: A) an increase in consumer incomes. B) some firms leaving an industry C) a decline in the prices of needed inputs. D) an improvement in the relevant technique of production

Answer

B) Some firms leaving an industry.

Decrease in the number of firm in the market leads to leftward shift in the supply curve because number of firms producing output decreases. An increase in the consumer income shifts the demand curve rightwards. A decline in the price of needed inputs decreases the cost of production of firm so leads to rightward shift of supply curve. An improvement in the technique to production increases output and thus lead to rightward shift of supply curve.

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