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Anna [14]
4 years ago
11

How does a decrease in price of input effect supply curve of the commodity

Arts
1 answer:
Lady bird [3.3K]4 years ago
4 0

Answer:

If all other related variables remain constant, a reduction in the cost of raw materials or products would most likely move the supply curve to the right for that product or service.  

   

Explanation:

A decrease in the price of raw materials means more inputs for the same amount of money. Manufacturers/ service providers will likely take advantage of this to produce more especially where the product is non-perishable. This increases the number of goods produced, and prices for that commodity falls.

 

Cheers!

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