If input prices fall, it will lower the cost of production, causing the supply curve to shift to the right.

Name: If input prices fall, it will lower the cost of production, causing the supply curve to shift to the right.
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Question

Quizplus · Accepted Answer

When input prices fall, the cost of production decreases, so producers can produce more goods at a lower cost. This will lead to an increase in the quantity supplied at every price level, causing the supply curve to shift to the right.

If Input Prices Fall, It Will Lower the Cost of Production