Question

option for the following from the options provided
7 What are the changes that take place in supply due to decrease in the price of a commodity
(C) Contraction
(D) Decrease
What are the ch
(A) Increase
(B) Expansion​

Answer 1

Answer:

Increase

Explanation:

Hence, Equilibrium price increases and equilibrium quantity falls. Now we can conclude, due to a decrease in supply, there is an increase in equilibrium price. Resultantly quantity demanded also decreases because the price has increased. Thus, the Supply curve will shift leftward.