A decrease in supply will occur when
A) the supply curve shifts downward to the right.
B) the supply curve shifts upward to the left.
C) the demand curve shifts downward to the left.
D) the demand curve shifts upward to the right.

Question

Quizplus · Accepted Answer

A decrease in supply means that producers are offering less of the product at every price level. This is shown by a leftward shift of the supply curve. Therefore, the correct answer is B, which describes a leftward shift of the supply curve. Choice A describes an increase in supply, while choices C and D describe changes in demand, not supply.

A Decrease in Supply Will Occur When