If the prices of the factors of production used to produce biscuits increase, _____.

the quantity demanded of biscuits will increase
the demand for biscuits will decrease
the quantity supplied of biscuits will increase
the supply of biscuits will decreaseCorrect

Explanation
If the prices of the factors of production used to produce biscuits increase, the cost of producing biscuits will increase, reducing the seller’s profits. Therefore, the producer will reduce the supply of biscuits, shifting the supply curve to the left.