Great job! If the cost of productions rises, the supply curve will decrease (shift left) and increase the equilibrium price. Because there is nothing that will SHIFT the demand curve in this scenario, we can conclude that the new higher price forces people to buy less as they move upward and to the left along their demand curves.
Incorrect. If the cost of productions rises, the supply curve will decrease (shift left) and increase the equilibrium price. Because there is nothing that will SHIFT the demand curve in this scenario, we can conclude that the new higher price forces people to buy less as they move upward and to the left along their demand curves.