In a standard supply-and-demand diagram, what happens when demand decreases?
A)Price declines and quantity demanded rises.
B)Price rises and quantity demanded declines.
C)Price and quantity supplied rise.
D)Price and quantity supplied decline.
E)Price and quantity demanded rise.

Question

Quizplus · Accepted Answer

When demand decreases, it means that consumers are less willing to buy goods at any given price, leading to a downward pressure on price. As the price declines, producers are willing to supply less, hence quantity supplied also declines.

In a Standard Supply-And-Demand Diagram, What Happens When Demand Decreases