"Consider the market for the Nissan Xterra. Suppose the price of​ metal, which is an input in automobile​ production, decreases. When the price of an input​ changes, this results in a __________ the supply curve

Respuesta :

Answer:

Rightward Shift in

Explanation:

Price of inputs is one of the factors affecting the supply.

When price of inputs decrease, the production of that good increases as a consequence, thereby increasing the supply, despite price of the good remaining same.

A shift in a supply curve occurs when factors other than price change. For instance, tastes and preferences, price of complementary goods, income of the consumer, price of inputs, etc.

In the given case, price of metal relates to a factor other than price i.e price of an input. When price of input reduces, it results into a rightward shift in the supply curve. Also referred to as an "increase in supply".