What will be the effect on equilibrium price if supply is decreased without any change in demand?
None of the above
No change in price
Price will fall
Price will rise

Question

What will be the effect on equilibrium price supply is decreased without any change in demand-None of the aboveNo change in pricePrice will fallPrice will rise

Toppr Admin · Accepted Answer

In case when the supply is reduced and demand is the same price of the goods will reduce- This is because when supply increases and demand is less to bring the market in equilibrium the price is reduced so that demand increases and market reaches to equilibrium-xA0-

What will be the effect on equilibrium price if supply is decreased without any change in demand?None of the aboveNo change in pricePrice will fallPrice will rise

In case when the supply is reduced and demand is the same price of the goods will reduce. This is because when supply increases and demand is less to bring the market in equilibrium the price is reduced so that demand increases and market reaches to equilibrium.

What will be the effect on equilibrium price if supply is decreased without any change in demand?
None of the above
No change in price
Price will fall
Price will rise