A reduction in production costs will not result in which of the following?
A) rightward shift of the supply curve.
B) increase in supply.
C) greater willingness and ability of producers to supply a larger quantity at any given price.
D) greater willingness and ability of consumers to demand a larger quantity at any given price.

Question

Quizplus · Accepted Answer

A reduction in production costs will lead to an increase in supply, which is represented by a rightward shift of the supply curve. It will also lead to greater willingness and ability of producers to supply a larger quantity at any given price. However, it will not directly affect the willingness and ability of consumers to demand a larger quantity at any given price, which is represented by a shift in the demand curve.

A Reduction in Production Costs Will Not Result in Which