If the equilibrium price of a good decreases and the equilibrium quantity of the good decreases, we can conclude that:

Question

Quizplus · Accepted Answer

When the equilibrium price decreases, it means that there is an excess supply of the good. This often happens when demand for the good decreases. As demand decreases, suppliers will lower their prices in order to sell the same quantity of goods. Therefore, if the equilibrium quantity also decreases, it suggests that there was a decrease in demand.

If the Equilibrium Price of a Good Decreases and the Equilibrium