Which of the following factors would cause the quantity supplied to move downward on the existing supply curve? - An increase in price - A decrease in price - Weather conditions - A change in the cost of production

Economics Dec 12, 2020

Which of the following factors would cause the quantity supplied to move downward on the existing supply curve?

- An increase in price

- A decrease in price

- Weather conditions

- A change in the cost of production

Expert Solution

The correct answer is a decrease in price. Changes in the price of a commodity result in a movement along the supply curve, all other factors affecting supply except the price will lead to a shift in the entire supply curve. To be specific a decrease in the price of a commodity will result in a downward movement along the supply curve indicating that there is a decrease in the supply of a product at a lower price.

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