What happens in the market for blenders if the price of glass, a key component in making blenders, rises?

• A. Demand shifts to the left  
• B. Demand shifts to the right  
• C. Supply shifts to the left
• D. Supply shifts to the right

Answer: (C)

Verified step by step guidance

1. Identify the key input whose price has changed: in this case, the price of glass, which is a key component in making blenders.
2. Understand the relationship between input prices and supply: when the cost of an input increases, it becomes more expensive for producers to make the product.
3. Analyze the effect on the supply curve: an increase in production costs causes the supply curve to shift to the left, indicating a decrease in supply at every price level.
4. Clarify that demand is not directly affected by the input price change, so the demand curve remains unchanged.
5. Conclude that the correct market response to a rise in the price of glass is a leftward shift in the supply curve for blenders.