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Discuss the consequences when we have a downsloping supply curve.

User Knack
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Final answer:

A downsloping supply curve leads to an increase in the quantity supplied at each price level, resulting in an expansion of the output produced in the market.

Step-by-step explanation:

When we have a downsloping supply curve, it means that the quantity supplied increases as the price decreases. This occurs when the cost of production decreases, such as a decrease in wages. The consequence of a downsloping supply curve is an increase in the quantity supplied at each price level. This leads to an expansion in the output produced in the market.

User Apogne
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