What will the effect on the equilibrium price be if supply is decreased without any change in demand?

[1 mark]

The price will not change.

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The price will fall.

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The price will rise.

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The quantity will remain unchanged

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Solution

The correct option is C The price will rise.
The price rises if the supply decreases with no change in demand. This is because the demand for the goods will increase with the decrease in supply. To restore equilibrium, the price will have to be raised.

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What will the effect on the equilibrium price be if supply is decreased without any change in demand? [1 mark]

The correct option is C The price will rise.The price rises if the supply decreases with no change in demand. This is because the demand for the goods will increase with the decrease in supply. To restore equilibrium, the price will have to be raised.

What will the effect on the equilibrium price be if supply is decreased without any change in demand?

[1 mark]

The correct option is C The price will rise.
The price rises if the supply decreases with no change in demand. This is because the demand for the goods will increase with the decrease in supply. To restore equilibrium, the price will have to be raised.