According to the standard model of supply and demand, an increase in production costs will result in:

An increase in production costs typically leads to a decrease in the supply of products available in the market. When production becomes more expensive for businesses—due to factors such as higher raw material costs, increased wages, or more expensive machinery—producers may not be able to maintain their previous levels of output. As a result, the overall supply of the product declines.

With a reduced supply, the prices tend to rise because the demand for the good remains the same or relatively unchanged, while there are fewer products available to meet this demand. Market dynamics suggest that when demand exceeds supply, prices increase. Thus, fewer products being sold at a higher price reflects this interaction between increased production costs and market supply, leading to both a decrease in quantity sold and an increase in price.

This response aligns with fundamental economic principles, illustrating how alterations in production costs can impact market behaviors and outcomes.