“Decreasing the supply of crude oil raises the crude oil price. When the crude oil price goes up, the demand for crude oil decreases. As a result, the equilibrium crude oil price drops and equilibrium quantity of crude oil declines.” What is (are) the mistake(s) in the above argument? Please state the mistake(s) and correct the above argument.

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.