If the supply of a product decreases, what would we expect?

Question

Quizplus · Accepted Answer

If the supply of a product decreases, it means there is less of the product available in the market which increases demand. This will cause the equilibrium price to increase as consumers bid up the price to secure the limited supply of the product. However, at the higher price, some consumers will be priced out of the market which decreases the equilibrium quantity. Therefore, the best choice is A where the equilibrium price increases and the equilibrium quantity decreases.

If the Supply of a Product Decreases, What Would We