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vazorg [7]
3 years ago
14

When a product becomes more expensive to produce, what effect does thay have on the supply curve

History
2 answers:
Stells [14]3 years ago
7 0

The supply curve represents the quantity of goods and services provided by the bidders for each price level. Thus, what determines the supply for a good or service is its final price and the cost of production. If the cost of producing the good increases, what will happen to the supply will depend on the behavior of the demand. Bidders will incur cost increases in price. If the demand decreases, the bidders will reduce the supply of that good that has become more expensive. This will cause the demand curve to move to the left in a price vs. quantity graph. If the good is a very important commodity, such as gasoline, rising costs will increase the final price, but demand will not decrease. In this way, the supply curve will remain the same, but incorporating the costs.

bearhunter [10]3 years ago
5 0
When a product becomes more expensive, the supply curve will simply go down. Which would make a low demand of said products in stores.
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