Figure 4.6
-Figure 4.6 illustrates a set of supply and demand curves for a product.Suppose that the market is currently in point A.If the price of the input of the product decreases,the market will move to point:

Question

Quizplus · Accepted Answer

If the price of the input of the product decreases, it will lower the cost of production for the suppliers, causing a shift in the supply curve to the right. As a result, the equilibrium point will move from A to B where the quantity demanded increases, and the quantity supplied increases, and the price decreases.

Figure 4.6 -Figure 4.6 Illustrates a Set of Supply and Demand Curves