If supply decreases and demand remains constant, then equilibrium price will be?

CA Foundation · Business Economics · MTP · June 2024
If supply decreases and demand remains constant, then equilibrium price will be?
(A) A. Increases
(B) B. Decreases
(C) C. No change
(D) D. Become Negative

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Increases

Topics: Money Market

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