Question

What causes a downward movement along a supply curve?

• A. Own price of a commodity remains constant
• B. Own price of a commodity falls
• C. Own price of a commodity increases
• D. Own price of a commodity expands

Answer 1

The correct option is B

Own price of a commodity falls

When the own price of a commodity falls, the quantity supplied will be reduced and hence, there will be a downward movement on the supply curve. The downward movement on the supply curve shows the contraction of supply.