When Supply Decreases and the Supply Curve Shifts to the Left

question 13

Multiple Choice

When supply decreases and the supply curve shifts to the left, equilibrium price ________ and equilibrium quantity ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

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Definitions:

Fair Value Accounting

An accounting approach that measures and reports assets and liabilities at their estimated market prices.

Financial Crises

A situation where the value of financial institutions or assets drops significantly, often characterized by panicked selling and loss of confidence in the financial system.

Accounting Standards Codification

The collection and integration of the authoritative accounting standards for U.S. GAAP.

IASB

The International Accounting Standards Board, responsible for developing and publishing the International Financial Reporting Standards (IFRS).