Suppose the input costs associated with manufacturing hair replacement treatments decrease over time.This would lead to a(n):
A)increase in the supply of such treatments,lower prices,and an increase in the equilibrium quantity.
B)decrease in quantity supplied and lower prices.
C)increase in demand and higher prices.
D)decrease in the supply of such treatments,higher prices,and a decrease in the equilibrium quantity.

Question

Quizplus · Accepted Answer

If input costs decrease, the production cost of manufacturing hair replacement treatments decreases. As a result, the supply of hair replacement treatments would increase due to the lower cost, and the price of such treatments would decrease. Due to the lower prices, consumers would demand more treatments, leading to an increase in the equilibrium quantity.

Suppose the Input Costs Associated with Manufacturing Hair Replacement Treatments