Explain one possible effect on the equilibrium market price of an increase in production costs for firms. (2 marks)

An increase in a firm's production costs might also mean a fall in a firm's willingness to supply a product, thereby resulting in a fall in the quantity of the product supplied, resulting in a new higher equilibrium market price for said product.

SH

Related Economics GCSE answers

All answers ▸

Explain the possible effect on consumers and producers when a specific tax is imposed on cigarettes.


Explain what the possible results could be from increasing the Euro/US dollar exchange rate (you are Euro)


What is opportunity cost?


What's the connection between the PPC and the AD/AS model?