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18 May, 10:31

How do falling prices of productive resources affect supply?

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Answers (2)
  1. 18 May, 10:45
    0
    It increases supply

    Explanation:

    If productive tools becomes cheap to acquire, more goods would definitely be produced and henceforth increase in supply by the producer.

    For example, if the cost of operating machinery falls, a producer would be able to acquire more of those equipment. With more tools on deck, production would scale up and supply of such goods would generally pump.
  2. 18 May, 14:02
    0
    As the price of a resource increases, the quantity demanded of that resource will decline
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