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14 November, 09:08

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to

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  1. 14 November, 10:43
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    Shift left

    Explanation:

    The steel is used as an input for the production of steel beam. So, if there is an increase in the price of steel then as a result the production of steel beams decreases because of the increase in the cost of production. This would result in a leftward shift in the supply curve of steel beams.

    The firms produce less of steel beams because of higher cost of production.
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