Question

1. a leftward shift of the supply curve for widgets, ceteris paribus, will cause equilibrium price to ______○ rise and equilibrium quantity to rise.○ rise and equilibrium quantity to fall.○ fall and equilibrium quantity to remain unchanged.○ fall and equilibrium quantity to fall.

Explanation:

A leftward supply shift means less widgets are available at every price, ceteris paribus. This creates a temporary shortage, pushing the equilibrium price up. As price rises, quantity demanded decreases, leading to a lower equilibrium quantity.

Answer:

rise and equilibrium quantity to fall.