How does an increase in production costs generally influence quantity supplied?

An increase in production costs typically leads to a decrease in quantity supplied because higher costs make it less profitable or feasible for producers to maintain the same level of output. When the cost of inputs such as labor, materials, and overhead rises, firms face tighter margins, which can result in them producing less at the same price level. Since higher production costs can reduce the willingness or ability of suppliers to offer goods or services in the market, the overall quantity of goods supplied decreases as a result.

In terms of supply curves, an increase in production costs shifts the supply curve to the left, indicating a lower quantity supplied at each price point. This reflects the fact that at higher costs, some producers may reduce output, or exit the market entirely, leading to a contraction in supply. This relationship underscores the fundamental principles of supply in economics: the higher the cost of production, the less quantity suppliers are willing to offer at existing prices, which aligns with the answer provided.