The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1

-Last year a firm made 1,000 units of its product available at a price of $5 per unit. This year the firm will still make 1,000 units available, but only if the price is $7 per unit. What is most likely to have happened?
A)Supply has increased
B)Supply has decreased
C)Demand has decreased
D)Quantity demanded has increased
E)Quantity supplied has increased

Question

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1
 
-Last year a firm made 1,000 units of its product available at a price of $5 per unit. This year the firm will still make 1,000 units available, but only if the price is $7 per unit. What is most likely to have happened?
A)Supply has increased 
B)Supply has decreased 
C)Demand has decreased 
D)Quantity demanded has increased 
E)Quantity supplied has increased

Quizplus · Accepted Answer

The firm has kept the same quantity supplied, but has increased the price. This suggests that the supply curve has shifted to the left (decreased) due to some factor, such as an increase in the cost of production. Therefore, the correct answer is B - supply has decreased.

The Table Given Below Reports the Quantity Demanded of a Good