Suppose That Initially, the Equations for Demand and Supply Are

Multiple Choice

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 to $7.50.
B) $8 to $8.50.
C) $8.50 to $7.50.
D) $7.50 to $8.50.