When Supply Decreases and Demand Does Not Change, the Equilibrium

question 116

Multiple Choice

When supply decreases and demand does not change, the equilibrium quantity ________ and the equilibrium price ________.

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

---

Definitions:

Company Profits

The financial gain that a company achieves after all expenses, taxes, and costs have been subtracted from total revenue.

Time-Series Graph

A two-variable graph that has dates on the horizontal axis and values of a variable that occurred on those dates on the vertical axis.

Seasonally Adjusted

A statistical technique used to remove seasonal variations from a data series to more clearly analyze trends.

Unemployment Rate

The fraction of individuals in the labor force who are without jobs and are searching for employment.