Supply is the quantity producers are willing to produce at each price. If production costs fall, the supply curve:

Supply is the quantity producers are willing to produce at each price. If production costs fall, the supply curve:

• A. Shifts to the right, increasing supply.
• B. Shifts to the left, decreasing supply.
• C. Becomes steeper along the same curve.
• D. Does not change.

Answer: (A)