Question

when economists say the quantity supplied of a product has decreased, they mean the: a. price of the product has fallen, and consequently, suppliers are producing less of it. b. supply curve has shifted to the right. c. supply curve has shifted to the left. d. price of the product has risen, and consequently, suppliers are producing more of it.

Explanation:

A change in quantity supplied refers to a movement along the existing supply curve, caused only by a change in the product's own price. A decrease in quantity supplied happens when the product's price falls, leading suppliers to produce less. Shifts in the supply curve (right or left) represent changes in supply, not quantity supplied. Option d describes an increase in quantity supplied, which is the opposite of the scenario.

Answer:

a. price of the product has fallen, and consequently, suppliers are producing less of it.