A new technique of production reduces the marginal cost of producing paper. How will this affect the supply curve of writing material like notebook,…

CA Foundation · Business Economics · MTP · June 2024
A new technique of production reduces the marginal cost of producing paper. How will this affect the supply curve of writing material like notebook, register & notepad etc?
(A) A. Upward movement on same supply curve
(B) B. Downward movement on same supply curve
(C) C. Leftward shift in supply curve
(D) D. Rightward shift in supply curve

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Rightward shift in supply curve

Topics: Theory of Demand and Supply

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