Suppose that initially, supply is given by the equation Qs = 4P ? 16. If, as a result of lower production costs, the quantity supplied increases by 4 at every price, the new supply equation would be:
A. Qs = 4P ? 12.
B. Qs = 8P ? 16.
C. Qs = 4P ? 20.
D. Qs = P ? 16.
Answer: A
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