If demand is downward sloping,a decrease in supply with no change in demand will lead to a(n)_____ in equilibrium quantity and a(n)_____ in equilibrium price.
A)increase;increase
B)increase;decrease
C)decrease;increase
D)decrease;decrease

Question

Quizplus · Accepted Answer

When supply decreases with no change in demand, the equilibrium point moves along the demand curve towards a higher price and lower quantity. Therefore, there will be a decrease in equilibrium quantity and an increase in equilibrium price.

If Demand Is Downward Sloping,a Decrease in Supply with No