Question

Suppose your production costs increased. In 1 or 2 sentences, describe the effect of this increase on the quantity of goods you supply

Answer 1

Answer,

Increase in production costs will lower the quantity of goods supplied because the prices of goods will go higher and increase in price leads to decrease in quantity of goods supplied.A decrease in production cost will lower the prices leading to increase in quantity of goods supplied.

If the price of input goes up cost of producing the goods increases therefore each producer wants to get profit from their good.This will lead to increase in prices leading to decrease in supply.If the price remain the same it will lead to loss because the production cost is high.