A decrease in demand for a good generally implies that:

Question

Quizplus · Accepted Answer

A decrease in demand for a good means that consumers are willing to buy fewer units of the good at each price. This will shift the demand curve to the left, resulting in a decrease in both the equilibrium price and quantity. Therefore, the best choice is E, as it accurately describes the situation. Choices A, B, C, and D are all incorrect, as they describe situations that would result in an increase in demand, not a decrease.

A Decrease in Demand for a Good Generally Implies That