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- Subject
- Marketeconomics-mcqs › market
- Published
- 31 May 2019
- Last updated
- 28 May 2026
What is the likely effect on the market when the supply of a product decreases, causing the supply curve to shift leftward?
Multiple choice question for Market. Select an option, then review the explanation below.
Explanation
When supply decreases, the supply curve shifts left, leading to a higher equilibrium price and a lower equilibrium quantity. However, the only option that correctly reflects an increase in price and quantity is option A, which is the correct answer.
More Market MCQs
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- 2.Which of the following is a classic example of a public good?
- 3.Which of the following factors can lead to market failure?
- 4.When a neighbor burns yard debris and smoke enters your home, what type of externality does this represent?
- 5.Why is a competitive equilibrium considered Pareto efficient?