-Refer to the graph above to answer this question.What would be the new equilibrium price and quantity if supply decreased by 120?
A)Supply would be zero.
B)$1,400 and 80.
C)$1,000 and 40.
D)$800 and 80.

Question

-Refer to the graph above to answer this question.What would be the new equilibrium price and quantity if supply decreased by 120?
A)Supply would be zero. 
B)$1,400 and 80. 
C)$1,000 and 40. 
D)$800 and 80.

Quizplus · Accepted Answer

Without the graph, it's challenging to provide a specific answer. However, a decrease in supply typically leads to a higher equilibrium price and a lower equilibrium quantity. Thus, among the given options, $1,400 and 80 units could represent a scenario where the price increases and the quantity adjusts to a new equilibrium point, assuming the decrease in supply shifts the supply curve leftward.

-Refer to the Graph Above to Answer This Question