Suppose that initially, the equations for demand and supply are Qd = 48 ? 4P and Qs = 4P ? 16, respectively. If the quantity supplied decreases by 4 at every price (so that the supply curve shifts to the left), the equilibrium price will change from:
A. $8.50 to $7.50.
B. $8 to $8.50.
C. $8 to $7.50.
D. $7.50 to $8.50.
Answer: B
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