A decrease in supply causes the price to fall and the quantity traded to increase.

Name: A decrease in supply causes the price to fall and the quantity traded to increase.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A decrease in supply means that there is less of the product available in the market, which leads to an increase in price due to increased competition among buyers. This also leads to a decrease in the quantity traded as the higher price makes the product less affordable.

A Decrease in Supply Causes the Price to Fall and the Quantity