If the equilibrium price of a good increases and the equilibrium quantity of the good decreases, we can conclude that:

Question

Quizplus · Accepted Answer

When the equilibrium price of a good increases and the equilibrium quantity of the good decreases, it means that there has been a decrease in supply, which has caused the price to increase. This results in a smaller quantity of the good being exchanged at the new, higher price. Therefore, the correct answer is D, supply decreased.

If the Equilibrium Price of a Good Increases and the Equilibrium