What is the likely effect on the market when the supply of a product decreases, causing the supply curve to shift leftward?

Show Answers

Both the equilibrium price and quantity will riseThe equilibrium price will fall while the quantity risesNone of the above outcomes are correctBoth the equilibrium price and quantity will declineThe equilibrium price will increase but the quantity will decrease

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.