Question
If a supply curve shifts to the left, that could be caused by which of the following?
A decrease in the number of sellers
Increased demand due to advertising.
A decrease in input prices.
A technological improvement.
A decrease in the number of sellers
Increased demand due to advertising.
A decrease in input prices.
A technological improvement.
Answers
GPT-4o mini
A leftward shift in the supply curve indicates a decrease in supply. This can be caused by:
- **A decrease in the number of sellers.** When there are fewer sellers in the market, the overall supply of the good or service decreases, leading to a leftward shift in the supply curve.
The other options would typically not cause a leftward shift in the supply curve:
- **Increased demand due to advertising** would generally shift the demand curve to the right, not the supply curve.
- **A decrease in input prices** would typically lead to an increase in supply, shifting the supply curve to the right.
- **A technological improvement** usually makes production more efficient, which would also increase supply and shift the supply curve to the right.
Therefore, the correct answer is **A decrease in the number of sellers.**
- **A decrease in the number of sellers.** When there are fewer sellers in the market, the overall supply of the good or service decreases, leading to a leftward shift in the supply curve.
The other options would typically not cause a leftward shift in the supply curve:
- **Increased demand due to advertising** would generally shift the demand curve to the right, not the supply curve.
- **A decrease in input prices** would typically lead to an increase in supply, shifting the supply curve to the right.
- **A technological improvement** usually makes production more efficient, which would also increase supply and shift the supply curve to the right.
Therefore, the correct answer is **A decrease in the number of sellers.**