Hops are used to produce beer. If the price of hops decreases:

Question

Quizplus · Accepted Answer

A decrease in the price of hops will lower the cost for beer producers, leading to an increase in the supply of beer as producers are incentivized to produce more at a lower cost. As a result, the supply curve for beer will shift to the right. This is the basic principle of the law of supply, which states that quantity supplied will increase as price decreases, all else being equal.

Hops Are Used to Produce Beer