Question

How would supply shift caused by lower costs of production affect price and quantity?

higher price, lower quantity
higher price, lower quantity

lower price, lower quantity
lower price, lower quantity

lower price, higher quantity
lower price, higher quantity

higher price, higher quantity

Answer 1

[AI-generated answer — Bot GPT 3.5]

Lower costs of production would lead to an increase in supply, causing the supply curve to shift to the right. This would result in a lower price and a higher quantity of the good being supplied. Therefore, the correct answer is: lower price, higher quantity.