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

1734 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What is the basic economic problem?


What are the 4 main factors of production?


Give two disadvantages to the government of rising unemployment.


What does consumer surplus mean?


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:

© 2025 by IXL Learning