2. When a product becomes more expensive to produce, what effect does that have on the supply curve

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Scott Perkins

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16 April, 00:24

2. When a product becomes more expensive to produce, what effect does that have on the supply curve

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Jon Molina · Answer 1

Answer: Somethings that may happen is that they will produce the product in lower amounts or that they may have to cheapen out on some materials to get passed the costs and make profit. For example a computer may need a 800 watt power supply for it to work properly but because it is too expensive, they may do something like put a 600 watt power supply in it, label it 800 watt and get some cheap parts to make sure the computer still works to accommodate the lower watt PSU.