CLEP Microeconomics Exam Prep

Answer - C - Input price is the first determinant of supply.

Key Takeaway: The input is simply all of the resources that go into the creation of a product. When a producer is making their good, they must always take the price of the inputs into account. If the price of any of the input resources rises, it will cost the producer more to produce their goods and he/she will typically offer fewer of them.