A decrease in the supply of a good causes: an increase in equilibrium quantity and a decrease in equilibrium price. an increase in the equilibrium price and a decrease in equilibrium quantity. an increase in equilibrium price and quantity. a decrease in equilibrium price and quantity.

A decrease in the supply of a good causes: an increase in equilibrium quantity and a decrease in equilibrium price. an increase in the equilibrium price and a decrease in equilibrium quantity. an increase in equilibrium price and quantity. a decrease in equilibrium price and quantity.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 2MC

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Question

A decrease in the supply of a good causes:
an increase in equilibrium quantity and a decrease in equilibrium price.
an increase in the equilibrium price and a decrease in equilibrium quantity.
an increase in equilibrium price and quantity.
a decrease in equilibrium price and quantity.

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