When demand decreases and supply does not change, the equilibrium price and the equilibrium quantity .

Question

Quizplus · Accepted Answer

When the demand for a product decreases while the supply remains unchanged, there will be an excess supply of the product which will lead to a decrease in the equilibrium price and quantity. This is because producers will have to lower the price of the product to encourage consumers to buy more, resulting in a lower quantity demanded. As a result, the equilibrium price and quantity will fall.

When Demand Decreases and Supply Does Not Change, the Equilibrium