When economists say that the supply for a product has decreased, they mean that the:

• A. quantity supplied has increased at every price
• B. supply curve has shifted to the right
• C. supply curve has shifted to the left
• D. market price has decreased

Answer: (C)

Verified step by step guidance

1. Understand the difference between a movement along the supply curve and a shift of the supply curve. A movement along the supply curve happens when the price changes, affecting the quantity supplied.
2. Recognize that a change in supply means the entire supply curve shifts either to the left or to the right, indicating a change in quantity supplied at every price level.
3. Recall that a decrease in supply means producers are willing to supply less of the product at every price, which corresponds to a leftward shift of the supply curve.
4. Note that an increase in quantity supplied at every price would mean the supply curve shifts to the right, which is the opposite of a decrease in supply.
5. Conclude that when economists say the supply has decreased, they mean the supply curve has shifted to the left, not that the quantity supplied has increased or that the market price has decreased.