If the price of a good increases while the quantity of the good exchanged on markets decreases, then the most likely explanation is that there has been
A) an increase in demand.
B) a decrease in demand.
C) an increase in supply.
D) a decrease in supply.

Question

Quizplus · Accepted Answer

When the price of a good increases and the quantity of the good exchanged on the market decreases, it typically indicates a decrease in supply. This is because a reduced supply would lead to higher prices due to scarcity, and lower quantities being sold as there is less of the good available.

If the Price of a Good Increases While the Quantity