A decrease in supply results in a(n)
A) decrease in demand
B) increase in equilibrium quantity and a decrease in equilibrium price
C) decrease in equilibrium quantity and a decrease in equilibrium price
D) increase in demand
E) increase in equilibrium price and a decrease in equilibrium quantity

Question

Quizplus · Accepted Answer

A decrease in supply typically leads to a higher equilibrium price and a lower equilibrium quantity, as there is less of the good available, causing prices to rise and quantity to fall.

A Decrease in Supply Results in A(n)