When supply decreases and the supply curve shifts to the left, equilibrium price ________ and equilibrium quantity ________.

Question

Quizplus · Accepted Answer

When supply decreases and the supply curve shifts to the left, the equilibrium price increases and the equilibrium quantity decreases. This is because there is now less supply available for the same level of demand, causing a higher price for the same quantity of goods.

When Supply Decreases and the Supply Curve Shifts to the Left