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Figure: The Demand and Supply of Wheat
-(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. If there is a decrease in supply of 2,000 bushels at each price, the equilibrium price and quantity will be _____ and _____ bushels, respectively.
A)$5; 5,000
B)$7; 5,000
C)$6; 4,000
D)$8; 6,000

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Use the following to answer questions :
Figure: The Demand and Supply of Wheat 
-(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. If there is a decrease in supply of 2,000 bushels at each price, the equilibrium price and quantity will be _____ and _____ bushels, respectively.
A)$5; 5,000 
B)$7; 5,000 
C)$6; 4,000 
D)$8; 6,000

Quizplus · Accepted Answer

A decrease in supply shifts the supply curve leftward, leading to a higher equilibrium price and a lower equilibrium quantity. The new equilibrium is at $7 and 5,000 bushels.

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