In a situation when import of inputs becomes expensive, equilibrium price of the commodity tends to rise.
A
True
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
False
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is A True True. When import of inputs becomes expensive, the cost of production rises, leading to a cut in supplies. The supply curve shifts to the left. Accordingly, equilibrium price of the commodity tends to rise.