Question

question 12
last year, the pottery palace supplied 8,000 ceramic pots at $40 each. this year, the company supplied the same quantity of ceramic pots at $55 each. based on this evidence. the pottery palace has experienced
o an increase in supply.
o a decrease in supply.
o a decrease in the quantity supplied.
o an increase in the quantity supplied.
question 13

Explanation:

Supply refers to the quantity of a good that producers are willing and able to offer for sale at various prices. Quantity supplied is the amount of a good that producers offer for sale at a specific price. Here, the price of ceramic pots decreased from $55 to $40, but the quantity supplied remained the same. According to the law of supply (ceteris paribus, quantity supplied increases as price increases and decreases as price decreases), when price falls and quantity supplied doesn't change as expected, it is a decrease in supply. A change in quantity supplied would be a movement along the supply - curve due to a price change, while a change in supply is a shift of the supply - curve.

Answer:

a decrease in supply