SOMEONE PLEASE HELP ME WITH THIS-a spurt increase in input prices has increased the cost of production of capital goods. Use diagram and economic theory to analyse the impact of the above statement on the supply of capital goods in the country.
Dear student,
With increase in price of input prices, the cost of production increases which lower down the profit margin of producer, as a result the supply of good falls and supply curve shifts leftward.
Regards
With increase in price of input prices, the cost of production increases which lower down the profit margin of producer, as a result the supply of good falls and supply curve shifts leftward.
Regards
