If the demand for a good decreased, what would be the effect on the equilibrium price and quantity?
A) Price would increase, and quantity would decrease.
B) Price would decrease, and quantity would decrease.
C) Price would increase, and quantity would increase.
D) Price would decrease, and quantity would increase.

Question

Quizplus · Accepted Answer

When demand decreases, the equilibrium price and quantity both decrease because there is less willingness to buy the good at previous prices, leading to a surplus that drives the price down and reduces the quantity sold.

If the Demand for a Good Decreased, What Would Be