As the price of lead falls (a key input in the production of automobile batteries), the costs of producing batteries decreases, shifting the supply curve of batteries:
A) down and to the left.
B) up and to the right.
C) down and to the right.
D) up and to the left.

Question

Quizplus · Accepted Answer

When the price of a key input in the production of a product falls, it makes it cheaper to produce that product. This means that the supply curve of the product will shift down and to the right, as producers can now supply more of the product at every price level. In this case, as the price of lead falls, the costs of producing automobile batteries will decrease, shifting the supply curve of batteries down and to the right.

As the Price of Lead Falls (A Key Input in the Production