If demand decreases and supply increases, then the

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Quizplus · Accepted Answer

When demand decreases, it means that consumers are less willing or able to buy the product at various price levels. This would shift the demand curve to the left. On the other hand, when supply increases, it means that producers are willing and able to sell more of the product at various price levels. This would shift the supply curve to the right. The intersection of these two curves would result in a new equilibrium point. However, the direction of the effect on equilibrium price and quantity is unknown since it depends on the relative magnitudes of the shifts of the two curves. However, we can predict with confidence that the equilibrium price will fall if demand shifts left and supply shifts right.

If Demand Decreases and Supply Increases, Then the