Final answer:
Manufacturers can enhance environmental sustainability by using fewer scarce resources, which may also lower production costs and provide competitive advantages. This can lead to increased supply of goods at potentially lower prices for consumers.
Step-by-step explanation:
A manufacturer would benefit from using fewer scarce resources by enhancing environmental sustainability. This is because utilizing fewer resources often results in a reduced environmental impact and helps preserve resources for future use. Moreover, companies that prioritize sustainability can appeal to a growing demographic of environmentally conscious consumers, potentially increasing their customer base and improving their public image.
Consumers, on the other hand, stand to benefit by having access to goods that are better for the environment, potentially at lower prices due to increased efficiency in production. Manufacturers that are able to produce with fewer inputs or more sustainable methods can decrease production costs over time, which can in turn lower prices for consumers or allow for higher profit margins for companies without raising prices.
Firms facing an increase in the cost of inputs will often seek out alternative production technologies or methods to maintain profitability. In the wake of such changes, there can be an overall increase in supply of goods at lowered production costs, which is generally depicted as a rightward shift in the supply curve in economic models.