If the cost to produce frozen chicken nuggets decreases at the same time as consumer tastes shift away from frozen chicken nuggets and the shift in supply is greater than the shift in demand, which of the following is true?

Question

Quizplus · Accepted Answer

The decrease in production cost increases supply, shifting the supply curve rightward, while the shift in consumer tastes away from frozen chicken nuggets decreases demand, shifting the demand curve leftward. If the shift in supply is greater than the shift in demand, this leads to a lower equilibrium price due to increased supply and potentially a higher equilibrium quantity if the increase in supply outweighs the decrease in demand.

If the Cost to Produce Frozen Chicken Nuggets Decreases at the Same