In general,when the supply curve shifts to the left and demand is constant,then the
A) market cannot re-establish an equilibrium.
B) equilibrium price will fall.
C) equilibrium quantity will rise.
D) equilibrium price will rise.
E) quantity supplied increases.

Question

Quizplus · Accepted Answer

When the supply curve shifts to the left, it means that producers are willing to supply less of the good at every price level. With constant demand, this creates a shortage in the market, which leads to an increase in the equilibrium price in order to equate the quantity supplied with the quantity demanded. Therefore, the best choice is D, equilibrium price will rise.

In General,when the Supply Curve Shifts to the Left and Demand