There are two different ways costs can fall: Demand decreases and supply increases. On the off chance that request decreases, amount will decrease. In the event that supply expands, amount will increase.
Further Explaination:
The supply curve moves to the right:
Costs of significant information sources - if the expense of assets used to deliver a decent builds, dealers will be less disposed to supply a similar amount at a given cost, and the supply bend will move to one side. Innovation - mechanical advances that expansion creation proficiency move the supply bend to one side.
The supply curve moves to the left:
Supply bend move, Changes underway expense and related elements can cause a whole supply bend to move right or left. This causes a higher or lower amount to be provided at a given cost.
The quantity demanded rises:
This implies as cost deceases, the amount requested increase. Any change or development to amount requested is delineated as a development of the point along the interest bend and not a move in the interest bend itself. A move in the interest bend itself just occurs over the long haul and comes as a change to balance.
Falling prices affect supply when the quantity demanded rises:
The lessening sought after makes over abundance supply create at the underlying cost. Over abundance supply will make value fall, and as value falls makers are happy to supply less of the great, in this way decreasing yield. b. An expansion sought after will cause an expansion in the harmony cost and amount of a decent.
Subject: business
Level: High School
Keywords: The supply curve moves to the right, The supply curve moves to the left, The quantity demanded rises, Falling prices affect supply when the quantity demanded rises.
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Answer:
The answer is: If the equilibrium price of a product or service decreases, then the quantity supplied of that product or service will also decrease.
Explanation:
I guess that there is a mistake in the question, since all possible answers are wrong or the question wasn't copied correctly. But lets continue with the explanation...
The law of supply and demand states that at the equilibrium price, the quantity supplied of a product equals the quantity demanded of that product. If the price of the product falls below the equilibrium price (e.g. maybe a price ceiling is set), the quantity supplied of the product will decrease and the quantity demanded of the product will increase.
