Consider the market in the figure to the right. What happens to the market curve if the costs of production decrease? Using the line drawing tool, graph the new supply curve with a lower cost of production. Label it S'. Carefully follow the instructions above, and only draw the required object.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 8CQ
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Consider the market in the figure to the right. What happens to the market supply
curve if the costs of production decrease?
Using the line drawing tool, graph the new supply curve with a lower cost of
production. Label it S'.
Carefully follow the instructions above, and only draw the required object.
Price
S
Quantity
Transcribed Image Text:Consider the market in the figure to the right. What happens to the market supply curve if the costs of production decrease? Using the line drawing tool, graph the new supply curve with a lower cost of production. Label it S'. Carefully follow the instructions above, and only draw the required object. Price S Quantity
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