In Figure 3- 9, the current position of the supply curve is S₁, and the price of a wireless earbud is $3.

If the cos t of inputs that suppliers utilize to produce wireless earbud s decrease s, will the supply curve shift to S₂ or to S₃? What is the change in the a mount of wireless ear buds supplied ?

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FIGURE 3-9 Shifts in the Supply Curve If the cost of producing wireless earbuds were to fall dramatically, the supply curve would shift rightward from S to S such that at all prices, a larger quantity would be forthcoming from suppliers. In contrast, if the cost of production rose, the supply curve would shift leftward to S3. Price per Wireless Earbud ($) 0 1 2 1 4 S3 S 10 I 12 6 8 Quantity of Wireless Earbuds Supplied (millions of constant-quality units per year) S