Economy, asked by taha9610, 9 months ago

An increase in the prices of goods due to higher input costs in one term

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Answered by SaI20065
4

If the price of inputs goes up, the cost of producing the good increases. And therefore at each price producers need to sell their good for more money. So an increase in the price of inputs leads to a decrease in supply. Simarly, a decrease in the price of inputs leads to an increase in supply.

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