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

Related Economics GCSE answers

All answers ▸

Explain two advantages that firms may gain from a horizontal merger.


What are the factors affecting the price elasticity of demand?


What is the central economic problem?


What is Price Elasticity of Demand?