With a downsloping demand curve and an upsloping supply curve for a product, a decrease in resource prices will

Question

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When there is a decrease in resource prices, the cost of producing the product decreases for the suppliers, leading to an increase in supply. This will cause the supply curve to shift to the right. As a result, the equilibrium price will decrease and equilibrium quantity will increase because the increase in supply will lower the price while increasing the quantity demanded.

With a Downsloping Demand Curve and an Upsloping Supply Curve