If the prices of the factors used to produce a good change,both the demand curve and the supply curve of the good will shift.
A change in the costs of production will impact the supply curve only.

Question

Quizplus · Accepted Answer

A change in the costs of production will affect the supply curve of the good, but it may also affect the demand for the good if the cost change affects consumer preferences or income levels. Therefore, both the demand and supply curves of the good may shift in response to a change in the prices of factors of production.

If the Prices of the Factors Used to Produce a Good