Question
What does a leftward shift of a supply curve indicate? Decrease in demand A decrease in supply An increase in supply An increase in demand
Answer
4.1
(249 Votes)
Ulysses
Master · Tutor for 5 years
Answer
A decrease in supply
Explanation
## Step 1:First, we need to understand what a leftward shift of a supply curve represents in economic terms. In the context of supply and demand, a leftward shift of the supply curve indicates that the quantity of a good that producers are willing and able to sell at each price has decreased. ## Step 2:Next, we evaluate each of the given options in the context of this shift.- Decrease in demand: This would cause a leftward shift of the demand curve, not the supply curve. So, this option is incorrect.- A decrease in supply: This is the correct interpretation of a leftward shift of the supply curve. - An increase in supply: This would cause a rightward shift of the supply curve, not a leftward shift. So, this option is incorrect.- An increase in demand: This would cause a rightward shift of the demand curve, not a shift of the supply curve. So, this option is incorrect.