In case of _______ supply falls at the same price. (Decrease in supply/ Contraction in supply
Answers
Answer:
In case of decrease in supply fall at the same price.
Answer :
In case of a decrease in supply, the supply falls at the same price.
Explanation :
In case of a decrease in supply, the quantity of a good or service available for sale decreases while the price remains the same. This can happen due to a variety of reasons such as decrease in production, increase in production costs, or a decrease in the number of suppliers. This can lead to a decrease in the quantity of goods or services available for purchase at a given price, resulting in a higher equilibrium price and a reduction in the quantity demanded. This is in contrast to a decrease in demand, where the quantity supplied remains the same while the price falls.
Decrease in supply can also be referred as contraction in supply. The contraction of supply can be caused by several factors such as decrease in production, natural disaster, decrease in number of suppliers, increase in cost of production. All these factors lead to a decrease in the quantity of goods or services that is being supplied in the market.
In summary, decrease in supply or contraction in supply is when the quantity of a good or service available for sale decreases while the price remains the same. This can result in a higher equilibrium price and a reduction in the quantity demanded.
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