A decrease in the price of a productive resource will result in each of the following except a(n)
A) downward shift in the average-cost curves for all products that use the resource.
B) rightward shift in the supply of products which use the resource.
C) rightward shift in the demand curves for all products that use the resource.
D) increase in the quantity demanded of this productive resource.

Question

Quizplus · Accepted Answer

A decrease in the price of a productive resource will result in lower production costs for goods that use the resource, leading to a downward shift in the average-cost curves for those products (A) and a rightward shift in the supply of those products (B). It will also increase the quantity demanded of the resource (D) since it is now more affordable. However, it will not result in a rightward shift in the demand curves for those products (C).

A Decrease in the Price of a Productive Resource Will