JAMB - Economics (2016 - No. 20)
What effect would a change in price of a commodity have on its supply?
An increase in supply
No change in supply
A decrease in supply
A change in the quantity supplied
Forklaring
A change in the price of a good or service, holding all else constant, will result in a movement along the supply curve. A change in the cost of an input will impact the cost of producing a good and will result in a shift in supply; supply will shift outward if costs decrease and will shift inward if they increase.