Consider a market that is in equilibrium. If the market experiences a decrease in demand:
A) the equilibrium price and quantity will rise.
B) the equilibrium price will rise and the equilibrium quantity will fall.
C) the equilibrium price and quantity will fall.
D) the equilibrium price will fall and the equilibrium quantity will rise.

Question

Quizplus · Accepted Answer

When demand decreases, both the equilibrium price and quantity fall because the lower demand shifts the demand curve to the left, leading to a lower price and quantity where the new demand curve intersects the supply curve.

Consider a Market That Is in Equilibrium