An decrease in supply is caused by a decrease in the price of the product.

Name: An decrease in supply is caused by a decrease in the price of the product.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

A decrease in supply is caused by factors such as a decrease in the availability of resources or an increase in production costs, not by a decrease in the price of the product. In fact, a decrease in price may cause an increase in demand, which could potentially lead to an increase in supply if producers respond accordingly.

An Decrease in Supply Is Caused by a Decrease in the Price