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
Answered by Sam H. Economics tutor

2135 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

How does the World Trade Organisation (WTO) benefit developing countries?


Explain two causes of a shift of a supply curve to the right.


Define opportunity cost


Please explain the concept of price elasticity of demand


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning