1. The problem asks about the effect on the supply curve when suppliers anticipate a higher future price for wireless earbuds.
2. The supply curve, labeled $S_1$, shows the relationship between price and quantity supplied. When suppliers expect higher future prices, they tend to hold back supply now to sell more later at higher prices.
3. This behavior causes the current supply curve to shift to the left, meaning at each price, the quantity supplied decreases.
4. Therefore, the new supply curve, labeled $S_2$, will be to the left of $S_1$.
5. At the current price of $4$, the quantity supplied on $S_2$ will be less than on $S_1$.
6. To draw $S_2$, shift the original $S_1$ curve leftward.
7. Mark the point $A_2$ on $S_2$ where the price is $4$; this point will have a smaller quantity than $4$ million units.
8. In summary, anticipating higher future prices causes the supply curve to shift left, decreasing current quantity supplied at price $4$.
Supply Shift 998Fec
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