One of the fundamental determinants of supply is the input price. If the price of an input increases, the supply of the output decreases (shifts left):
Starbucks has hiked its prices just a day after increasing staff pay.
The cafe giant announced that the price of all brewed coffees will leap by 10 to 20 cents, while espressos and lattes will rise by 10 to 30 cents.
The increase comes just a day after Starbucks announced a pay rise of at least five per cent for all store employees and managers.
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