Consider a market that is in equilibrium. If the market experiences a decrease in supply:
A) the equilibrium price and quantity will rise.
B) the equilibrium price will rise and the equilibrium quantity will fall.
C) the equilibrium price and quantity will fall.
D) the equilibrium price will fall and the equilibrium quantity will rise.

Question

Quizplus · Accepted Answer

A decrease in supply will cause a shift to the left in the supply curve, resulting in a higher equilibrium price and a lower equilibrium quantity.

Consider a Market That Is in Equilibrium