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Question
State whether the following statement is True or False.
If price falls, the supply curve will shift to the left.
State whether the following statement is True or False.
If price falls, the supply curve will shift to the left.
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Solution
The correct option is B False
1:Shifting of the supply curve to the left is due to a decrease in demand which is not the result of a change in price but due to changes in the factors other than price. These factors may be changes in taxes, cost of production, etc.
2:When the price falls the there is movement along the curve not shift
1:Shifting of the supply curve to the left is due to a decrease in demand which is not the result of a change in price but due to changes in the factors other than price. These factors may be changes in taxes, cost of production, etc.
2:When the price falls the there is movement along the curve not shift
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