If the cost of producing a product goes down,this will cause the equilibrium price of the product to go down and the equilibrium quantity of the product to go up.

Question

Quizplus · Accepted Answer

If the cost of producing a product goes down, it will lower the minimum price a producer is willing to accept for the product. This will lead to a decrease in the equilibrium price, as the supply curve shifts to the right (increase in quantity supplied) and the demand curve remains unchanged. With the lower price, consumers will be willing to buy more, leading to an increase in the equilibrium quantity of the product.

If the Cost of Producing a Product Goes Down,this Will