ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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rightward shift in the supply curve.
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movement down the supply curve.
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leftward shift in the supply curve.
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movement up the supply curve.
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Detailed explanation-1: -movement down the supply curve. A decrease in the quantity supplied means that the number of units being supplied to the market has decreased. The relationship between the price and the number of units remains the same due to which the curve does not shift.
Detailed explanation-2: -A decrease in supply shifts the supply curve leftward. 2. The price rises to restore market equilibrium.
Detailed explanation-3: -An increase in supply is shown as a shift to the right of a supply curve; a decrease in supply is shown as a shift to the left.
Detailed explanation-4: -The downward shift represents the fact that supply often increases when the costs of production decrease, so producers don’t need to get as high of a price as before in order to supply a given quantity of output.