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When there is a decrease in supply, all else held equal, equilibrium price falls, demand increases,...

When there is a decrease in supply, all else held equal,

equilibrium price falls, demand increases, and equilibrium quantity increases.
equilibrium price falls, demand does not change, and equilibrium quantity increases.
equilibrium price rises, quantity demanded decreases, and equilibrium quantity decreases.
equilibrium price falls, quantity demanded decreases, and equilibrium quantity decreases.
equilibrium price rises, demand does not change, and equilibrium quantity increases.
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Answer #1

Answer : C is the correct option .

Because when supply decrease then the supply curve shifts to leftward on existing demand curve [as all else are held equal] and there occur a new equilibrium situation where price is higher for low supply of quantity in comparison to the before equilibrium situation . As a result, at higher price level in new equilibrium situation the quantity demand decrease because of negative relationship between price and quantity demand.

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