Suppose Supply Decreases, but There Is No Change in Demand

question 103

Multiple Choice

Suppose supply decreases, but there is no change in demand. As the market reaches its new equilibrium:

• A)excess demand will lead the price to rise.
• B)excess supply will lead the price to rise.
• C)excess demand will lead the price to fall.
• D)excess supply will lead the price to fall.

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Definitions:

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