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

Question

(1 point)
Responses

higher price, lower quantity

higher price, lower quantity

lower price, lower quantity

lower price, lower quantity

lower price, higher quantity

lower price, higher quantity

higher price, higher quantity

higher price, higher quantity

Answer 1

When there is a supply shift caused by lower costs of production, the supply curve shifts to the right. This typically results in a lower equilibrium price and a higher equilibrium quantity. Therefore, the correct response is:

lower price, higher quantity