How do the equilibrium price and quantity of a commodity change when price of input used in its production changes?

How do the equilibrium price and quantity of a commodity change when p

1.	How do the equilibrium price and quantity of a commodity change when price of input used in its production changes?
Answer» <html><body><p></p>Solution :A change in price of <a href="https://interviewquestions.tuteehub.com/tag/inputs-1045695" style="font-weight:bold;" target="_blank" title="Click to know more about INPUTS">INPUTS</a> will directly influence the equilibrium price and quantity of the commodity. <br/> An <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> in price of inputs will raise the <a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a> <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> and it will lead to decrease in supply of the commodity. It will lead to excess demand. <br/> On the other hand, a decrease in price of inputs will increase the supply due to fall in cost of production and rise in profit margin. It will lead to excess supply.</body></html>