When supply decreases there is a ______ at the old equilibrium price, which puts ______ pressure on price until the market reaches the new equilibrium.
A) surplus; downward
B) surplus; upward
C) shortage; upward
D) shortage; downward

Question

Quizplus · Accepted Answer

When supply decreases, there is a shortage at the old equilibrium price, which puts upward pressure on price until the market reaches the new equilibrium.

When Supply Decreases There Is a ______ at the Old