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For a given downward-sloping demand curve,a decrease in supply will cause a(n) :
A) increase in demand.
B) increase in equilibrium quantity.
C) increase in quantity demanded.
D) decrease in quantity demanded.
E) decrease in equilibrium price.
Decrease in Supply
A reduction in the availability of a particular good or service in the market.
Downward-Sloping Demand
A fundamental economic principle stating that, ceteris paribus, the quantity demanded of a good falls as the price of the good rises, illustrated by a downward-sloping demand curve.
Equilibrium Quantity
The quantity of goods or services supplied that is equal to the quantity demanded at the market equilibrium price.
- Master the concept of market stability and how alterations in supply and demand influence the price and quantity in equilibrium.
- Scrutinize market situations to identify the repercussions of supply and demand shifts on the directional movement in equilibrium price and quantity.
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Learning Objectives
- Master the concept of market stability and how alterations in supply and demand influence the price and quantity in equilibrium.
- Scrutinize market situations to identify the repercussions of supply and demand shifts on the directional movement in equilibrium price and quantity.
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