When the demand for a good decreases, its equilibrium price ________ and equilibrium quantity ________.

Name: When the demand for a good decreases, its equilibrium price ________ and equilibrium quantity ________.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

When demand for a good decreases, both the equilibrium price and quantity of the good decrease. This is because lower demand leads to a surplus at the original price, causing sellers to lower prices, which in turn reduces the quantity sold.

When the Demand for a Good Decreases, Its Equilibrium Price