A Decrease in Supply Is Caused By

question 56

Multiple Choice

A decrease in supply is caused by:

• A) an increase in returns from other alternative activities.
• B) suppliers' expectations of lower prices in the future.
• C) an advancement in the technology for producing the good.
• D) a decrease in the price of a good using the same resources.

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Definitions:

Booming Economy

An economic state characterized by rapid growth, increased spending, and low unemployment.

CPI

The Consumer Price Index represents a method for determining the average prices of a variety of consumer goods and services, such as healthcare, transportation, and food, by using their weighted average prices.

Inflationary Recessions

Inflationary recessions are periods of economic decline accompanied by high inflation, where the economy is shrinking while prices for goods and services rise.

E-Commerce

Electronic commerce, or e-commerce, encompasses the buying and selling of goods and services using the internet and other electronic systems.