When supply decreases, the equilibrium price rises and the equilibrium quantity falls.

Name: When supply decreases, the equilibrium price rises and the equilibrium quantity falls.
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Question

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When supply decreases, the available quantity of a good or service at any given price is lower, leading to an increase in price due to higher demand for the now scarcer resource. Consequently, the equilibrium quantity, where supply equals demand, falls because there are fewer goods or services available.

When Supply Decreases, the Equilibrium Price Rises and the Equilibrium