How would supply shift caused by lower cost of production effect price and quantity?

Question

A Higher price lower quantity
B Lower price lower quantity
C Lower price higher quantity
D Higher price higher quantity

Answer 1

C Lower price higher quantity

When the cost of production decreases, suppliers are able to produce goods at a lower cost, resulting in an increase in the quantity supplied at every given price. This shift in supply will lead to a lower equilibrium price and a higher equilibrium quantity traded in the market.