A decrease in supply is caused by:
A)an increase in the price of goods that are used in production.
B)suppliers' expectations of lower prices in the future.
C)an advancement in the technology for producing the good.
D)an increase in the number of producers.

Question

Quizplus · Accepted Answer

An increase in the price of goods that are used in production will increase the cost of production for the suppliers, making it less profitable to produce the good. As a result, suppliers may decrease their supply.

A Decrease in Supply Is Caused By