What does a decrease in supply result in?
a. a higher equilibrium quantity
b. no change in equilibrium price
c. a lower equilibrium quantity
d. a lower equilibrium price

Respuesta :

Answer:

The correct answer is option c.

Explanation:

A decrease in the supply will cause the supply curve to shift to the left. This leftward shift in the supply curve will further cause the demand and supply curve to intersect at a higher point.

As a result, there will be an increase in the equilibrium price and a decrease in the equilibrium quantity.

This also represented in the figure given below.

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