What effect would a change in price of a commodity have on its supply?
ECONOMICS
JAMB 2016
What effect would a change in price of a commodity have on its supply?
- A. An increase in supply
- B. No change in supply
- C. A decrease in supply
- D. A change in the quantity supplied
Correct Answer: D. A change in the quantity supplied
Explanation
A change in the price of a good or service, holding all else constant, will result in a movement along the supply curve. A change in the cost of an input will impact the cost of producing a good and will result in a shift in supply; supply will shift outward if costs decrease and will shift inward if they increase
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