A Decrease in Supply Is Caused By

question 61

Multiple Choice

A decrease in supply is caused by:

• A)an increase in the price of goods that are used in production.
• B)suppliers' expectations of lower prices in the future.
• C)an advancement in the technology for producing the good.
• D)an increase in the number of producers.

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Definitions:

Positive Correlation

A relationship between two variables in which both move in the same direction, meaning as one variable increases, the other also increases.

Moral Hazard

A situation in which one party is more likely to take risks because they do not bear the full consequences of their actions, often due to information asymmetry.

Deductible

The amount paid out of pocket by the policyholder before an insurance company pays a claim.

Insurance Coverage

The amount and types of risk or liability that are covered for an individual or entity by insurance services, against losses.