What is the effect of a rise in production costs on the supply curve?

Supply and Demand MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Supply and Demandeconomics-mcqs › supply-and-demand
Published
29 May 2019
Last updated
28 May 2026

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Explanation

When production costs increase, suppliers are less willing or able to provide the same quantity at each price level, resulting in a leftward (inward) shift of the supply curve. Demand curves are not directly affected by changes in production costs.

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