Which of the following events would shift a supply curve to the left?(1 point)

Question

Responses

The price of the good that the firms produce is expected to fall in the near future.
The price of the good that the firms produce is expected to fall in the near future.

The prices of many inputs are dramatically reduced.
The prices of many inputs are dramatically reduced.

Local government increases the taxes that are levied on firms.
Local government increases the taxes that are levied on firms.

The number of sellers in the market increases.

Answer 1

A leftward shift in the supply curve indicates a decrease in supply. Among the options provided, the event that would shift the supply curve to the left is:

Local government increases the taxes that are levied on firms.

Higher taxes on firms typically increase their costs of production, which would lead to a decrease in the overall supply of the good. The other options would either not affect supply or would increase it (e.g., reduced input prices or an increase in the number of sellers).

So, the correct response is:

Local government increases the taxes that are levied on firms.