An increased equilibrium price and a decreased equilibrium quantity results from a(n):

Question

Quizplus · Accepted Answer

If supply decreases, then there will be less of a product available at every given price level. This causes the equilibrium price to increase as consumers are willing to pay more to obtain the product. However, the decrease in supply also means that the equilibrium quantity will decrease, as there is less of the product available to be consumed.

An Increased Equilibrium Price and a Decreased Equilibrium Quantity Results