A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Name: A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.
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Question

Quizplus · Accepted Answer

According to the law of demand, as the price of a good increases, the quantity demanded of that good decreases. Therefore, if a decrease in supply leads to an increase in price, it will subsequently cause a decrease in quantity demanded.

A Decrease in Supply Will Cause an Increase in Price