Question
When economists say the quantity supplied of a product has decreased, they mean the:
a. price of the product has fallen, and consequently, suppliers are producing less of it.
b. price of the product has risen, and consequently, suppliers are producing more of it.
c. supply curve has shifted to the right.
d. supply curve has shifted to the left.
a. price of the product has fallen, and consequently, suppliers are producing less of it.
b. price of the product has risen, and consequently, suppliers are producing more of it.
c. supply curve has shifted to the right.
d. supply curve has shifted to the left.
Ask by Sherman Johnson. in the United States
Jan 24,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
When economists say the quantity supplied of a product has decreased, they mean the price of the product has fallen, and suppliers are producing less of it.
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The Deep Dive
When economists mention a decrease in the quantity supplied, they are typically referencing a situation where the supply curve has shifted to the left. This shift indicates that at every price level, suppliers are willing to produce and sell less of the product, often due to factors like increased production costs or external events impacting supply chains.
It’s essential to distinguish between a decrease in quantity supplied and a decrease in supply. The first refers to a movement along the curve caused by price changes, while the latter involves the entire supply curve shifting due to various influences, such as government policies or changes in technology affecting overall production capacity.
