A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Question

Quizplus · Accepted Answer

A reduction in an input price will cause a shift in the supply curve to the right, indicating an increase in supply at every price level, not just a change in the quantity supplied. The quantity supplied changes in response to price changes of the product itself, while supply changes in response to non-price determinants, such as input costs.

A Reduction in an Input Price Will Cause a Change