A leftward shift of the supply curve in a market with a downward-sloping demand curve will lead to a(n)
A)increase in equilibrium price.
B)excess demand at the old equilibrium price.
C)decrease in quantity demanded.
D)All of the above.

Question

Quizplus · Accepted Answer

A leftward shift of the supply curve indicates a decrease in supply. This typically leads to an increase in equilibrium price due to the scarcity of the product (A), creates excess demand at the old equilibrium price because the quantity supplied at that price is now less than the quantity demanded (B), and ultimately results in a decrease in quantity demanded as the price rises (C).

A Leftward Shift of the Supply Curve in a Market