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When a supply curve shifts bodily to the left, it conveys that, at each given price, producers now offer:
Aa larger quantity for sale than before
Bexactly the same quantity as before
Ca smaller quantity for sale than before
Dnothing at all for sale in the market
Answer & Solution
Correct answer: C. a smaller quantity for sale than before
1. A leftward shift of the supply curve is a decrease in supply.
2. A decrease in supply means less is offered for sale at every price.
3. Hence at each given price the quantity offered is smaller.
4. A larger quantity would be a rightward shift, and 'nothing at all' overstates the case, so both are ruled out.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit III "Supply", p.4_
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