Mykha's company makes jewelry from doll shoes. She increases production but finds that her costs continue to rise while profits decrease. What letter on the graph represents Mykha's situation?

A
B
C
D

Cost-push When production costs rise and the overall supply of products and services declines, inflation has taken place. For instance, it's feasible that the owner of a firm will simply shut down the operation if low-paid workers at the facility organize a union and demand higher salaries.

Thus, option D is correct.

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Mykha's company makes jewelry from doll shoes. She increases production but finds that her costs continue to rise while profits decrease. What letter on the graph represents Mykha's situation? A B C D

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What is cost-push inflation?

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Mykha's company makes jewelry from doll shoes. She increases production but finds that her costs continue to rise while profits decrease. What letter on the graph represents Mykha's situation?

A
B
C
D