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Question
In case of ______, supply falls at the same price.
Options
Decrease in supply
Contraction in supply
Increase in supply
Expansion in supply
Solution
In 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.
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