A decrease in supply, with demand unchanged, leads to

a rise in equilibrium price and a fall in quantityCorrect answerYour answera fall in both price and quantityCorrect answerYour answera rise in both price and quantityCorrect answerYour answerno change in priceCorrect answerYour answer

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CorrectNot quiteAnswer A

Correct answer: A

Supply shifts left along an unchanged demand curve: the new point is higher and to the left.

Concept: Decrease in supply
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsWhen demand or supply shifts

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Ten questions from Market Equilibrium & Price Controls, at your own pace.

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Ten questions from Market Equilibrium & Price Controls, at your own pace.

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A decrease in supply, with demand unchanged, leads to

Explanation