Question

In the case of ______, supply falls at the same price.

Options

• Decrease in supply

• Contraction in supply

• Increase in supply

• Expansion in supply

Answer 1

In the case of decrease in supply, supply falls at the same price.

Explanation:

A decrease in supply refers to a situation where the quantity supplied falls even though the price remains the same. This can occur due to higher production costs, unfavourable technological changes, or other factors affecting production. A leftward shift of the supply curve represents this.