All else held constant,a decrease in demand will lead to a
A)decrease in price and increase in quantity supplied.
B)increase in price and increase in quantity supplied.
C)increase in price and decrease in quantity supplied.
D)decrease in price and decrease in quantity supplied.

Question

Quizplus · Accepted Answer

A decrease in demand, all else being constant, leads to a decrease in price because sellers must lower prices to attract buyers. This, in turn, results in a decrease in quantity supplied as producers are less willing to supply at lower prices.

All Else Held Constant,a Decrease in Demand Will Lead to a