Suppose the input costs associated with manufacturing hair replacement treatments decrease over time.This would lead to a(n):
A) increase in the supply of such treatments,lower prices,and an increase in the equilibrium quantity.
B) decrease in the quantity supplied and lower prices.
C) increase in demand and higher prices.
D) decrease in the supply of such treatments,higher prices,and a decrease in the equilibrium quantity.

Question

Quizplus · Accepted Answer

When the input costs associated with manufacturing hair replacement treatments decrease, the producers can now produce more at a lower cost, and this would lead to an increase in the supply of such treatments. The increase in supply would result in lower prices and an increase in the equilibrium quantity. Hence, choice A is the correct answer.

Suppose the Input Costs Associated with Manufacturing Hair Replacement Treatments