If the price of inputs goes up, the cost of producing the good increases. And therefore at each price producers need to sell their good for more money. So an increase in the price of inputs leads to a decrease in supply.

How does an increase in input costs affect supply?

Input costs determine the price of good or service. ... So if input costs increase, the price of product will increase, too. This will lead to increased supply, due to law of supply, and opposite, if input costs decrease, the price of product will be lower and this will lead to supply reduction.

What effect do rising input costs have on the price of a good?

What effect do rising input costs have on the price of a good? The good becomes more expensive to produce. How does new technology generally affect production? It lowers cost and increases supply.