When production costs increase, the supply curve shifts to the left, leading to a decrease in quantity supplied and an increase in the market price. This phenomenon can be primarily attributed to changes in __________.

When production costs increase, it becomes more expensive for producers to make their goods. This means they are less willing or able to supply the same amount at previous prices, causing the supply curve to shift to the left. As a result, the quantity of goods supplied decreases, and since there are fewer goods available, the market price tends to rise. For example, if a bakery faces higher flour prices, it may bake fewer loaves of bread, leading to higher prices for the bread that is available. This situation primarily arises from changes in production costs, which directly affect how much producers can supply.