Consider a market that is in equilibrium.If it experiences a decrease in supply,what will happen?
A) The supply curve will shift to the left and the equilibrium price and quantity will rise.
B) The supply curve will shift to the left and the equilibrium price will increase and the equilibrium quantity will decrease.
C) The supply curve will shift to the left and the equilibrium price and quantity will fall.
D) The supply curve will shift to the right and the equilibrium price and quantity will fall.
Correct Answer:
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