Some Producers Are Chatting Over a Beer

Multiple Choice

Some producers are chatting over a beer. Which one of the following quotations refers to a leftward shift of the supply curve?

A) "Wage increases have forced us to raise our prices."
B) "Our new, sophisticated equipment will enable us to undercut our competitors."
C) "Raw material prices have sky-rocketed; we will have to pass the cost on to our customers."
D) "We anticipate a big increase in demand. Our product price should rise, so we are planning for an increase in output."
E) Both A and C