Decrease in Supply Assignment Help

Assignment Help: >> Change in Quantity Supplied and Change in Supply - Decrease in Supply

Decrease in Supply:

A decrease supply occurs when firms offer less of a product for sale than before when the market price has not changed. This brings about a complete shift of the supply curve to the left as shown in Figure 2.10 below. The initial supply curve was SOS0 but as a result of a decrease in the supply of Amala. It has completely shifted to S2S2. Though a result of a decrease in the supply of Amala. It has completely shifted to S2S2. Though the market price of Amala still remains at c6,000 supply has decreased from 60 bags to 50 bags.

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