Question

A decrease (leftward shift) in the supply for a good will tend to cause ________.

1) an increase in price and a decrease in quantity
2) a decrease in price and an increase in quantity
3) an increase in price and an increase in quantity
4) a decrease in price and a decrease in quantity

Answer 1

A leftward shift in the supply curve for a good will cause an increase in price and a decrease in quantity.

Step-by-step explanation:

A leftward shift in the supply curve for a good will tend to cause an increase in price and a decrease in quantity. This is because a decrease in supply means that there is less of the good available in the market, which leads to an increase in price. At the same time, there is a decrease in the quantity of the good that consumers can purchase at the higher price.