Question

If automobile workers went on strike causing a decreased supply of cars, the supply curve would shift inward to the left, and ____.

A. there would be an eventual downward movement along the demand curve, reestablishing equilibrium
B. there would be in eventual upward movement along the demand curve, reestablishing equilibrium
C. the demand curve would eventually shift to the right, reestablishing equilibrium
D. the demand curve would eventually shift to the left, reestablishing equilibrium​

Answer 1

The correct answer is B. there would be in eventual upward movement along the demand curve, reestablishing equilibrium.

Decreased supply will lead to an increase in demand as consumers fight each other for the limited supply.