A decrease in the number of consumers in a market causes market demand to:
A) decrease, resulting in a surplus which will be eliminated as price rises.
B) decrease, resulting in a surplus which will be eliminated as price falls.
C) increase, resulting in a shortage which will be eliminated as price rises.
D) increase, resulting in a shortage which will be eliminated as price falls.

Question

Quizplus · Accepted Answer

A decrease in the number of consumers leads to a decrease in market demand, causing a surplus. To eliminate the surplus, prices will fall.

A Decrease in the Number of Consumers in a Market