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.

LR
Answered by Leonie R. Economics tutor

10287 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Factors that affect the demand of a good or service?


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


Explain why food is price inelastic.


What are the factors affecting the 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