A decrease in the supply of blankets, with the demand for blankets being unchanged, will
A) increase the equilibrium quantity and decrease the equilibrium price
B) increase the equilibrium quantity and increase the equilibrium price
C) decrease the equilibrium quantity and decrease the equilibrium price
D) decrease the equilibrium quantity and increase the equilibrium price

Question

Quizplus · Accepted Answer

A decrease in the supply of blankets, with demand unchanged, leads to a higher equilibrium price due to scarcity, and a lower equilibrium quantity because there are fewer blankets available to buy.

A Decrease in the Supply of Blankets, with the Demand