A decrease in the supply of a good causes a(n)

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When the supply of a good decreases, it means there is less of it available in the market. This leads to an increase in demand as consumers may still want to purchase the same amount of product despite the decrease in supply. This increase in demand leads to a shortage, and suppliers are therefore able to increase their prices. This results in an increase in the equilibrium price and a decrease in the equilibrium quantity.

A Decrease in the Supply of a Good Causes A(n)