Any factor that shifts the supply curve inward and to the left and does not affect the demand curve will raise the equilibrium price and reduce the equilibrium quantity.

Question

Quizplus · Accepted Answer

If the supply curve shifts inward and to the left, it means that there is a decrease in supply, which would cause an increase in price and a decrease in quantity demanded since there is less supply available to meet the same level of demand. This shift in the supply curve would not have any effect on the demand curve.

Any Factor That Shifts the Supply Curve Inward and to the Left