A decrease in supply,holding demand constant,will always result in a(n)
A) higher equilibrium price.
B) lower equilibrium price.
C) higher equilibrium quantity.
D) greater quantity demanded.
E) indeterminate change in the equilibrium quantity.

Question

Quizplus · Accepted Answer

When there is a decrease in supply, the supply curve shifts to the left, creating a new equilibrium point where the quantity supplied is lower and the price is higher. Therefore, a decrease in supply holding demand constant will always result in a higher equilibrium price.

A Decrease in Supply,holding Demand Constant,will Always Result in A(n)