A sudden increase in raw material prices causes a supply shock. What is the likely impact on the supply curve and equilibrium price?

• A. The supply curve remains constant, and equilibrium price decreases.
• B. The supply curve shifts right, and equilibrium price decreases.
• C. The supply curve shifts left, and equilibrium price decreases.
• D. The supply curve shifts left, and equilibrium price increases.

Answer: (D)