Which of the following would reduce the supply of microcomputers (shift the supply curve for microcomputers leftward)?

• A. An improvement in production technology for microcomputers
• B. An increase in the number of firms producing microcomputers
• C. A decrease in the price of microcomputers
• D. An increase in the price of silicon chips, a key input in producing microcomputers

Answer: (D)

Verified step by step guidance

1. Understand that the supply curve represents the relationship between the price of a good and the quantity supplied, holding other factors constant.
2. Recognize that a leftward shift in the supply curve means a decrease in supply at every price level, which can be caused by factors that increase production costs or reduce the ability to produce.
3. Identify that an increase in the price of silicon chips, a key input in producing microcomputers, raises production costs, making it more expensive to produce the same quantity of microcomputers.
4. Recall that higher input costs cause producers to supply less at each price, shifting the supply curve to the left.
5. Contrast this with other options: improvements in technology or more firms increase supply (shift right), and a change in the price of microcomputers itself causes movement along the supply curve, not a shift.