Figure 4.6
-Figure 4.6 illustrates a set of supply and demand curves for a product.Suppose that the market is currently in point A.If the price of the input of the product decreases,the market will move to point

Question

Quizplus · Accepted Answer

In the given graph, point B represents a lower equilibrium price and a higher equilibrium quantity compared to point A. Therefore, if the price of the input of the product decreases, the supply curve will shift to the right, resulting in a lower equilibrium price and higher equilibrium quantity, moving the market from point A to point B.

Figure 4.6 -Figure 4.6 Illustrates a Set of Supply and Demand Curves