Suppose a commodity market is initially in equilibrium.An increase in the nation's skilled labor force then lowers the marginal cost of producing each unit of output.Which of the following changes will be observed?

Question

Quizplus · Accepted Answer

An increase in the skilled labor force reduces the marginal cost of production, leading to an increase in supply. This is represented by a downward shift of the supply curve, indicating that producers are willing to supply more at each price level.

Suppose a Commodity Market Is Initially in Equilibrium