Concept:Cost-push inflation occurs when rising production costs push up the general price level.
Explanation:An increase in the cost of production usually comes from more expensive inputs like wages, raw materials, and energy.
When these costs rise, producers spend more to make the same amount of goods or services.
Because production becomes more expensive, businesses reduce the quantity they are willing to supply.
This fall in aggregate supply leads to higher prices across the economy.
That type of inflation is called cost-push inflation because the higher cost of production "pushes" prices upward.
Hyper-inflation and demand-pull inflation are mainly linked to excessive money supply or high demand, not rising production costs.
Structural inflation arises from inefficiencies in the economy rather than a direct rise in production costs.
Therefore, the option that will cause an increase in the cost of production is cost-push inflation.
Answer:B. Cost push inflation