If labor costs increase, what is the most likely effect on the supply curve?

When labor costs increase, it typically becomes more expensive for companies to produce goods or services. As a result, businesses may not be able to supply the same amount of products at previous prices. This situation usually leads to a decrease in supply, which means the supply curve shifts to the left on a graph. For example, if a bakery has to pay its workers more, it might make fewer loaves of bread available because the costs are higher. Consequently, consumers may face higher prices and fewer options in the market.