Suppose that both the equilibrium price and the equilibrium quantity of ketchup fall.The most consistent explanation for these observations is
A) a decrease in the demand for ketchup with no change in supply.
B) an increase in the demand for ketchup with no change in supply.
C) an increase in the demand for ketchup and a decrease in the supply of ketchup.
D) an increase in the supply of ketchup with no change in demand.
E) a decrease in the supply of ketchup with no change in demand.

Question

Quizplus · Accepted Answer

A decrease in demand leads to a lower equilibrium price and quantity, consistent with the observed changes.

Suppose That Both the Equilibrium Price and the Equilibrium Quantity