A decrease in supply will cause
A) an increase in demand.
B) a decrease in demand.
C) an increase in quantity demanded.
D) a decrease in quantity demanded.
E) a decrease in equilibrium price.

Question

Quizplus · Accepted Answer

A decrease in supply means that the quantity supplied at each price level is lower. This will lead to a decrease in the equilibrium quantity demanded, as consumers will be willing to pay less for the good or service.

A Decrease in Supply Will Cause