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 makes production cheaper, leading to a potential increase in supply (B) and a decrease in average costs (A), but it does not directly affect the demand curves for products (C). Demand curves shift due to changes in consumer preferences, income, prices of related goods, etc., not due to changes in production costs.

A Decrease in the Price of a Productive Resource Will