A leftward shift of the supply curve will lead to an
A) increase in equilibrium price.
B) excess supply at the old equilibrium price.
C) increase in quantity supplied.
D) All of the above.

Question

Quizplus · Accepted Answer

A leftward shift of the supply curve indicates a decrease in supply. This typically leads to an increase in the equilibrium price as the quantity available decreases while demand remains constant, leading to higher prices. Choices B and C are incorrect because a leftward shift would actually lead to a shortage (not excess supply) at the old equilibrium price and a decrease (not increase) in the quantity supplied at any given price.

A Leftward Shift of the Supply Curve Will Lead to an