A leftward shift of a product's supply curve might be caused by which of the following?

• A. An increase in the cost of production inputs
• B. A decrease in the price of the product
• C. An increase in the number of suppliers
• D. A technological improvement in production

Answer: (A)

Verified step by step guidance

1. Understand what a leftward shift in the supply curve means: it indicates a decrease in supply, meaning at every price, less quantity is supplied.
2. Recall that supply depends on factors like production costs, technology, number of suppliers, and product price (which affects quantity supplied, not supply itself).
3. Analyze each option: An increase in the cost of production inputs raises production costs, making it less profitable to supply the same quantity, thus shifting supply leftward.
4. A decrease in the product price causes movement along the supply curve, not a shift of the supply curve itself.
5. An increase in the number of suppliers or a technological improvement typically increases supply, shifting the supply curve rightward, not leftward.