We observe a rise in the price of serivce A and a decrease in the quantity of serivce A bought and sold. Which is a likely explanation?
A) The law of supply is violated.
B) The demand for A decreased.
C) The demand for A increased.
D) The supply of A increased.
E) The supply of A decreased.

Question

Quizplus · Accepted Answer

A decrease in supply would lead to a higher price and a lower quantity sold, as the supply curve shifts leftward.

We Observe a Rise in the Price of Serivce a and a Decrease