The shift in supplies caused by lower cost of production can affect both price and quantity. Lower production costs can lead to an increase in the quantity of goods supplied, as producers are able to produce more goods at a lower cost. This increase in quantity can lead to a decrease in price, as the increased supply of goods can lead to competition among producers, driving down the price. On the other hand, if production costs remain the same, the shift in supplies can lead to an increase in price, as the increased demand for goods can lead to a decrease in supply, driving up the price.
