单选题 New disposal fees for toxic chemicals used in producing plastic house plants have increased production costs by $ 0.28 per plant for all manufacturers in the industry. The most likely effects on the industry supply curve and total producers' surplus in the market for plastic house plants are:
Industry supply Producers' surplus
①A. shifts left increases
②B. shifts left decreases
③C. shifts right decreases
  • A. ①
  • B. ②
  • C. ③
【正确答案】 B
【答案解析】An increase in production costs will decrease industry supply and the supply curve will shift to the left(less quantity supplied at each price). Assuming a downward sloping industry demand curve and no other change in the costs of production, the increase in per-unit cost will decrease producers' surplus in the plastic plant industry.