How would supply shift caused by lower costs of production affect price and quantity?

(1 point)

1 answer

A supply shift caused by lower costs of production would lead to a decrease in price and an increase in quantity.

When the costs of production decrease, producers are able to produce goods or services at a lower cost. This allows them to lower their prices and still make a profit. As a result, the supply curve shifts to the right, indicating an increase in supply.

With a lower price, consumers are more willing and able to purchase the product, leading to an increase in demand. The combination of increased supply and increased demand results in a higher quantity being produced and consumed in the market.
Similar Questions
  1. 18 of 2818 of 28 ItemsQuestion How would supply shift caused by lower costs of production affect price and quantity? (1 point)
    1. answers icon 1 answer
    1. answers icon 3 answers
    1. answers icon 1 answer
    1. answers icon 1 answer
more similar questions