A decrease in supply means:
A)a shift to the left of the entire supply curve.
B)a movement down the supply curve as prices go down.
C)that less will be demanded at every price.
D)that more will be supplied at every price.

Question

Quizplus · Accepted Answer

A decrease in supply means that there is a reduction in the quantity supplied at every price level. This will cause the entire supply curve to shift to the left, indicating a decrease in supply. Option B is incorrect because a movement down the supply curve represents an increase in quantity supplied in response to a decrease in price. Option C is incorrect because a decrease in supply does not necessarily imply a change in demand, and option D is incorrect because a decrease in supply will result in less quantity supplied at every price level.

A Decrease in Supply Means