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

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2026-03-30 09:00

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When the price of one or more inputs rise, producing the good is less profitable, and firms supply less of it. If input prices rise substantially, a firm might shut down and supply no good at all. Thus, the supply of a good is negatively related to the price of the inputs used to make the good.

(mankiw, Principles of Economics 4th Ed, page 74)

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