When supply decreases and demand does not change, the equilibrium quantity __________and the equilibrium price__________ .

Question

Quizplus · Accepted Answer

When supply decreases and demand remains constant, the available quantity of the product reduces, resulting in a shortage. To compensate, prices must increase, which leads to a rise in the equilibrium price. However, due to the shortage, the equilibrium quantity decreases.

When Supply Decreases and Demand Does Not Change, the Equilibrium