Help on this please?

Question

A decrease in supply, with no change in demand, will lead to ________ in equilibrium quantity and ________ in equilibrium price.

an increase; an increase

an increase; a decrease

a decrease; an increase

a decrease; a decrease

Answer 1

A decrease in supply will cause the quantity to decrease while increasing the price.

C

Answer 2

By decrease in supply I presume you mean a 'shift in the supply curve'. ie for each price less is supplied.

This means a decrease in equalibrium quantity and a increase in equalibruim price.

Answer 3

Decrease in quantity and increase in price because the supply curve will shift to the left.

Answer 4

a decrease, a increase off course..(see under price regimes of raitioning) only those customers with higher level of reservation price( a fn of marginal utility of money the amt u hv in pocket and m.u. of commodity)  will command the price at given lesser qty the market supply is inefficient due to various reason including expected prices and haence price increases(graphically see supply curve shifts left)

moe than enough said,....

Answer 5

A decrease; an increase - with unchanged demand and fall in supply equilibrium price will rise but equilibrium quantity will fall.