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.

1 answer

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.