If supply is upward sloping,a decrease in demand with no change in supply will lead to a(n)_____ in equilibrium quantity and a(n)_____ in equilibrium price.
A)increase;increase
B)increase;decrease
C)decrease;increase
D)decrease;decrease

Question

Quizplus · Accepted Answer

If there is a decrease in demand with no change in supply, this means that there will be an excess supply of goods, leading to a decrease in equilibrium quantity. Since the supply curve is upward sloping, this excess supply will put downward pressure on prices, leading to a decrease in equilibrium price. Therefore, the correct answer is D, decrease in equilibrium quantity and decrease in equilibrium price.

If Supply Is Upward Sloping,a Decrease in Demand with No