Any change in the price of an input can be expected to move equilibrium price up or down in the same direction along the market demand curve.(Everything else held fixed.)

Question

Quizplus · Accepted Answer

This statement is true according to the law of supply and demand, which states that an increase in input prices leads to a decrease in supply, resulting in a shift of the supply curve to the left, leading to a higher equilibrium price. Conversely, a decrease in input prices leads to an increase in supply, resulting in a shift of the supply curve to the right, leading to a lower equilibrium price.

Any Change in the Price of an Input Can Be