Supply decreases demand satys the same equilibrium price will blank and equilibrium quanity will blank?

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1145784

2026-08-15 15:55

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When supply decreases while demand remains the same, the equilibrium price will increase, and the equilibrium quantity will decrease. This occurs because the reduced supply creates a scarcity of goods, leading to higher prices as consumers compete for the limited availability. Consequently, fewer goods are sold at the new higher price, resulting in a lower equilibrium quantity.

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