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if the relative price of clothes (cc is represented production level of clothes) decrease , what will happen?

Fig. 4-7: From Goods Prices to Input Choices Berg

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If relative price of the clothes decreased then, people will demand more clothes at their existing income level. As demand rising producers tend to produce more clothes and production level will increase ,hence shifts the production level or supply curve shifts to the right.As the input prices fall leads to decrease in relative prices of the clothes, the equilibrium production cost moved downwards at the same time the equlibrium quantity produced will increase.

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