In a competitive market what happens to price when there is a decrease in the supply curve?

Question

Quizplus · Accepted Answer

When there is a decrease in the supply curve, the supply of goods or services is reduced. This leads to an increase in the equilibrium price as demand remains constant or increases. This is because consumers are willing to pay more to buy the same amount of goods or services due to the reduced supply. Therefore, option A is the correct answer.

In a Competitive Market What Happens to Price When There