In general, when the supply curve shifts to the left and demand is constant then:
A)the market cannot reestablish an equilibrium.
B)the equilibrium price will fall.
C)the equilibrium quantity will rise.
D)the equilibrium price will rise.

Question

Quizplus · Accepted Answer

When the supply curve shifts to the left and demand is constant, there is a decrease in the supply of the product causing a shortage in the market. This shortage leads to an increase in the equilibrium price as buyers compete for the limited supply of the product. Therefore, the correct choice is D.

In General, When the Supply Curve Shifts to the Left