the current position of the supply curve is Upper S 1
,
and the price of a wireless earbud is $4. If the cost of inputs that suppliers use to produce wireless earbuds decreases
,
which way will the supply curve shift? Will the quantity of wireless earbuds supplied increase or decrease?
If the cost of inputs that suppliers use to produce wireless earbuds decreases, the supply curve will shift to the right (shift outward). This means that at each price level, suppliers are willing and able to produce more wireless earbuds.
As a result, the quantity of wireless earbuds supplied will increase.