Suppose you make jewelry.If the price of gold falls,then we would expect you to

Question

Quizplus · Accepted Answer

When the price of gold falls, the cost of producing jewelry reduces. If the cost of production reduces, suppliers are inclined to produce more jewelry because they can now produce the same quantity of jewelry at a lower cost, thus increasing their profit margins. Therefore, the supplier would be willing and able to produce more jewelry than before at each possible price.

Suppose You Make Jewelry