What happens to the equilibrium price when there is a decrease in supply with no change in demand?

CA Foundation · Business Economics · PYQS · September 2024
What happens to the equilibrium price when there is a decrease in supply with no change in demand?
(A) A. Equilibrium price remains constant.
(B) B. Equilibrium price goes down.
(C) C. Equilibrium price goes up.
(D) D. Equilibrium quantity increases.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Equilibrium price goes up.

Topics: Theory of Demand and Supply

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic