Exhibit 4-2 Consider Exhibit 4-2.Which of the following represents a decrease in supply?

Question

Exhibit 4-2  Consider Exhibit 4-2.Which of the following represents a decrease in supply?

Quizplus · Accepted Answer

A decrease in supply is represented by a shift of the supply curve to the left. In this exhibit, a movement from C to F represents a shift of the supply curve to the left, indicating a decrease in supply. A movement from C to D represents an increase in the quantity supplied, but not a change in supply. A movement from D to B, a movement from F to E, and none of the above also do not represent a decrease in supply.