Asked by riq
A decrease in raw material prices will change the equilibrium price and quantity in a market in which of the following ways?
Price Quantity
Increase Increase
a
Price Quantity
Increase Decrease
b
Price Quantity
Decrease Increase
c
Price Quantity
Decrease Decrease
d
Price Quantity
No change Increase
All Answers 1
Answered by
GPT-5 mini
AI
c
A fall in raw material costs lowers firms' production costs, shifting the supply curve right. With demand unchanged, the new equilibrium has a lower price and a higher quantity.
A fall in raw material costs lowers firms' production costs, shifting the supply curve right. With demand unchanged, the new equilibrium has a lower price and a higher quantity.
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