(Answered) According to the law of supply, what happens when the price of a good increases? Supply increases…

➤ How does a change in production costs affect the supply curve?
If production costs fall, producers can offer more at each price, shifting the supply curve to the right. If costs rise, the curve shifts left because firms supply less at every price. Common cost factors include input prices, wages, energy, and technological improvements that alter supply independently of market price.