What Might Cause a Decrease in Current Supply of a Product

question 25

Multiple Choice

What might cause a decrease in current supply of a product?

• A)An increase in the product's own price
• B)New information that leads sellers to believe that the product's price will fall in the future
• C)New information that leads sellers to believe that the product's price will rise in the future
• D)A decrease in the price of one of the inputs used to make the product

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward-sloping due to the law of demand.

Surplus

The excess of supply over demand in a market, typically resulting in downward pressure on prices.

Nursing Wage Rate

The average hourly or annual pay that nurses receive, which can vary based on factors like geographic location, experience, and specialty.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price.