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

1616 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What is the law of demand?


What is a production possibility frontier?


Why does a govt focus on economic growth as a primary objective and should it always pursue this objective. Give reasons for your answer.


Evaluate the impact of a tax on sugar drinks. (This is probably more A-level than GCSE)


We're here to help

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

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences