If the supply of a good decreased, what would be the effect on the equilibrium price and quantity?
A) Price would increase, and quantity would decrease.
B) Price would decrease, and quantity would decrease.
C) Price would increase, and quantity would increase.
D) Price would decrease, and quantity would increase.

Question

Quizplus · Accepted Answer

When the supply of a good decreases, the equilibrium price tends to increase because the good becomes scarcer. At the same time, the equilibrium quantity decreases because there is less of the good available in the market.

If the Supply of a Good Decreased, What Would Be