how would supply shift caused by lower costs of production affect price and quantity?
higher price, lower quantity
lower price, lower quantity
lower price, higher quantity
higher price, higher quantity
lower price, higher quantity
When the costs of production decrease, suppliers are able to produce goods at a lower cost, leading to an increase in the quantity of supply. This increase in supply causes the price of the goods to decrease as suppliers are willing to sell more at a lower price. This leads to a lower price and a higher quantity being supplied in the market.