When economists say that the supply for a product has decreased, they mean that the: 1. supply curve has shifted to the right. 2. product has become more expensive and thus consumers are buying less of it. 3. supply curve has shifted to the left. 4. product has become particularly abundant for some reason.
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Step 1: When economists say that the supply for a product has decreased, it means that the supply curve has shifted to the left. Show more…
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On a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because the product in question is now relatively less expensive than substitute products. Explain why aggregate demand does not increase for the same reason in response to a decrease in the aggregate price level. In other words, what causes total spending to increase if it is not because goods are now cheaper?
When an economist says the demand for a product has increased, he or she means that: a) consumers are willing and able to purchase more at any given price. b) the demand curve has shifted to the right. c) The product has become more scarce and consumers therefore want it more. d) Consumers would be willing and able to pay less to receive the same quantity. e) The price has decreased and consumers will therefore purchase more of the product.
Chandra J.
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