Asked by Cristina Valadez on Jun 13, 2024
Verified
A decrease in supply of good X means:
A) a shift to the left of the entire supply curve for good X.
B) a movement down the supply curve as prices of good X go down.
C) that less of good X will be demanded at every price.
D) that more of good X will be supplied at every price.
Decrease in Supply
A situation where the quantity of a good that producers are willing to produce and sell at a given price level falls.
Supply Curve
A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to produce and sell.
Good X
A placeholder term for any product or service in economic analysis.
- Distinguish between movements along the curve and shifts of the curve for both demand and supply.
- Examine the alterations of supply and demand diagrams across a range of market conditions.
Verified Answer
AJ
Afnan jawataJun 18, 2024
Final Answer :
A
Explanation :
A decrease in supply means that there is less of the good available at every price level. This is represented by a shift to the left of the entire supply curve, as the quantity supplied at each price level will be lower than before.
Learning Objectives
- Distinguish between movements along the curve and shifts of the curve for both demand and supply.
- Examine the alterations of supply and demand diagrams across a range of market conditions.