A decrease in supply will cause a surplus at the original market price.

Name: A decrease in supply will cause a surplus at the original market price.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A decrease in supply, while demand remains constant, will lead to a shortage at the original market price, not a surplus, because there will be less of the good available than consumers want to buy at that price.

A Decrease in Supply Will Cause a Surplus at the Original