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

Question

Quizplus · Accepted Answer

When the cost of producing a good goes down, the producer is able to offer the good at a lower price than before while still making a profit. This creates downward pressure on the equilibrium price, causing it to go down. As the lower production cost also means that producers can supply more of the good at each price level, the equilibrium quantity of the good will increase. Therefore, the statement is true.

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