If price increases and quantity decreases which of the follo

If price increases and quantity decreases, which of the following may have happened? Select one: O a. supply increased and shifted right O b supply decreased and shifted left Oc. demand increased and shifted right O d. demand decreased and shifted left

Solution

\"B\"

Supply decreased and shifted left. With a decreased supply the price will increase and the quantity produced will decrease. This happens in the situation where the input cost of goods and services increase. like crude oil crisis.