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Figure: Interpreting Supply Shifts 3
-(Figure: Interpreting Supply Shifts 3) When the supply shifts from S₀to S₁ (a leftward shift of the supply curve) ,the equilibrium price changes from:

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Figure: Interpreting Supply Shifts 3

-(Figure: Interpreting Supply Shifts 3) When the supply shifts from S₀to S₁ (a leftward shift of the supply curve) ,the equilibrium price changes from:

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When there is a leftward shift of the supply curve, both the equilibrium price and quantity decrease. In this case, the equilibrium price changes from $40 to $60 because the supply has decreased, resulting in a higher price.

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