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Contraction o...

Question

Contraction of supply is the result of.

A

Decrease in the number of producers

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B

Decrease in the price of the good concern

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C

Increase in the prices of other goods

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D

Decrease in the outlay of sellers

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Solution

The correct option is A Decrease in the price of the good concern
Contraction is caused due to a decrease in the price or quantity supplied of the commodity.

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