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

Name: A 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 production or an increase in production costs, not by a decrease in the price of the product. In fact, a decrease in price can sometimes lead to an increase in supply, as producers try to make up for the lower profit margins by selling more units.

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