If a product's demand decreases as its supply simultaneously increases, the marginal revenue product curve will
A) shift to the right.
B) shift to the left.
C) remain unchanged.
D) either shift to the left, shift to the right, or remain unchanged depending upon what happens to product price.

Question

Quizplus · Accepted Answer

When demand for a product decreases while its supply increases, the value of the additional units produced (marginal revenue product) typically decreases. This is because the product becomes less scarce and less valuable, leading to a leftward shift in the marginal revenue product curve.

If a Product's Demand Decreases as Its Supply Simultaneously Increases