Suppose supply decreases along a given demand curve.What would be expected to happen to equilibrium price and quantity?

Question

Quizplus · Accepted Answer

When supply decreases, the supply curve shifts to the left, creating a situation where, at the original equilibrium price, the quantity demanded exceeds the quantity supplied. This excess demand puts upward pressure on the price, leading to an increase in the equilibrium price. However, because the supply has decreased, the equilibrium quantity will fall.

Suppose Supply Decreases Along a Given Demand Curve