If the demand for your firm's product is expected to decrease, you should anticipate a drop in the price you are currently receiving for your product.

Question

Quizplus · Accepted Answer

If the demand for a firm's product decreases, it means that there are fewer buyers in the market, which leads to a lower price for the product. The decrease in demand puts downward pressure on prices as firms try to sell their product to a smaller pool of potential buyers.

If the Demand for Your Firm's Product Is Expected to Decrease