Question

Resource X is necessary to the production of good Y. If the price of resource X rises, the _____________ curve for good Y will shift ____________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y.
a. supply; rightward; decrease; increase.
b. demand; leftward; decrease; decrease
c. demand; rightward; increase; increase
d. supply; leftward; increase; decrease
e. supply; leftward; increase; increase

Answer 1

Answer:

d. supply; leftward; increase; decrease 

Explanation:

If the price of resource x increases, it makes production of good y more expensive, this would discourage producers and the quantity of good Y supplied will fall. The fall in supply of good y would cause the supply curve for good y to shift to the left which causes price to rise and quantity to fall