Suppose there is a decrease in supply in a market where the supply curve slopes upwards and the demand curve slopes downwards. Which of the following would not occur?a) An excess supply. b) A fall in price.c) A fall in supplyd) A fall in the equilibrium level of expenditure.
Please help

What do you think? Look at the question and plot a graph.

A decrease in supply means there is a shift in demand curve to the left correct? I don't understand the terms of sloping downwards and upwards, do the slopes changes of the demand and supply curves?

I mean a shift in the supply curve, sorry..

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Originally Posted by omarashab

A decrease in supply means there is a shift in demand curve to the left correct? I don't understand the terms of sloping downwards and upwards, do the slopes changes of the demand and supply curves?

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Yes. In normal graphing, positive is up and negative is down. Upslope to the right is increasing demand. Downslope to the right is decreasing. Static would be no curve, a straight line.

Attachment 47767
Is this graphing correct?

Can you please provide the answer first, then I will be able to understand the exact graph... much appreciated..
the university provided me with the question answered it as C) a fall in supply.. but i think the price does not fall either since falling in supply would increase the price not decrease it, right?

Quote:

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Originally Posted by omarashab

Can you please provide the answer first, then I will be able to understand the exact graph... much appreciated..
the university provided me with the question answered it as C) a fall in supply.. but i think the price does not fall either since falling in supply would increase the price not decrease it, right?

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Handing you the answer is the same as doing your assignment for you... in the end you learn nothing by it. You show your work.. THEN we tell you were you are going wrong (As is REQUIRED by the site rules).

Its not that I did not try solving it and spent an hour on it, my mother language is not English so I don't think am understanding this question correctly, however the question would make perfect sense if the decrease was in the demand curve not the supply.. it is confusing me since a decrease in supply would result in increasing the price according to the law of supply and demand.. otherwise the whole question is not correct to begin with...

Tell us what you understand about it and why... tell us what you do know.