Explain one possible effect on the equilibrium market price of an increase in production costs for firms

An increase in production costs will result in an increase in the equilibrium price. This is because the increase in production cost means that firms will be less willing to supply and therefore there will be a fall in supply. As the market supply curve has shifted left this causes the equilibrium market price to rise.

Answered by Leonie R. Economics tutor

8856 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Evaluate the use monetary policy to aid the economy's recovery just after a recession.


Explain, using an example, what is meant by 'opportunity cost'?


What are causes of globalisation?


Evaluate one reason why trade may be beneficial for an economy (5 marks)


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences