Which of these causes a contraction of supply?

A rise in input costsCorrect answerYour answerA fall in the good's own priceCorrect answerYour answerA new taxCorrect answerYour answerFewer firmsCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Contraction is a movement down the same supply curve, caused only by a fall in own price.
The others shift the curve left: a decrease in supply.

Concept: Contraction of supply
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsDeterminants of supply; movement and shift

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Which of these causes a contraction of supply?

Explanation