In a supply and demand diagram, if the supply curve is upward sloping, a shift of the demand curve to the left, all other things equal, will:

Question

Quizplus · Accepted Answer

An upward sloping supply curve means that as the quantity demanded increases, the price also increases. When the demand curve shifts to the left, it means that consumers are willing to buy less at every price level. This results in a decrease in the equilibrium quantity, and since the supply curve is upward sloping, it also results in a decrease in the equilibrium price. Therefore, the correct answer is B, decrease in equilibrium price and quantity.

In a Supply and Demand Diagram, If the Supply Curve