Explain the factor 'input prices' that can cause a change in supply.
Dear Student
An increase in the price of the factors of production of a particular commodity may lead to a fall in its production shifting its supply curve leftwards and vice-versa. For Example, if the price of plastic used to make pens increases, then the cost of producing pens would also increase leading to reduction in the production capacity of the producer and thus decreasing supply and vice versa.
Hope this information clarifies your doubts. Keep posting :-)
Regards
An increase in the price of the factors of production of a particular commodity may lead to a fall in its production shifting its supply curve leftwards and vice-versa. For Example, if the price of plastic used to make pens increases, then the cost of producing pens would also increase leading to reduction in the production capacity of the producer and thus decreasing supply and vice versa.
Hope this information clarifies your doubts. Keep posting :-)
Regards