Question

Other things equal, if the price of a key resource used to produce product X falls, the:

A. product supply curve of X will shift to the right.
B. product demand curve of X will shift to the right.
C. product supply curve of X will shift to the left.
D. product demand curve of X will shift to the left.

Answer 1

If the price of a key resource used to produce product X falls, the product supply curve of X will shift to the right.

Step-by-step explanation:

When the price of a key resource used to produce product X falls, it would lead to a decrease in production costs. This would result in an increase in the supply of product X. Therefore, the correct answer is option A, the product supply curve of X will shift to the right.