Suppose that the equilibrium price of T-shirts increases and the equilibrium quantity of T-shirts decreases. This is best explained by:
A)an increase in the demand for T-shirts.
B)a decrease in the supply of T-shirts.
C)an increase in the supply of T-shirts.
D)a decrease in the demand for T-shirts.

Question

Quizplus · Accepted Answer

When supply decreases, the equilibrium price will rise, and the equilibrium quantity will fall.

Suppose That the Equilibrium Price of T-Shirts Increases and the Equilibrium