As the price of flour (an input into the cookie production process) increases, firms that produce cookies will: A. increase the supply of cookies. B. increase the quantity of cookies supplied. C. decrease the supply of cookies. D. decrease the quantity of cookies supplied

Respuesta :

Answer:

C. decrease the supply of cookies.

Explanation:

If the price of flour increases, the cost of producing cookies increases. This discourages production. The supply of cookies would fall and the supply curve would shift to the left as a result.

Only a change in the price of cookies would lead to a movement along the supply curve of cookies and cause a change in quantity supplied.

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