-In Figure1.1, if demand falls, then equilibrium:
A)price and quantity fall.
B)price and quantity rise.
C)price falls and quantity rises.
D)prices rises and quantity falls.

Question

-In Figure1.1, if demand falls, then equilibrium:
A)price and quantity fall. 
B)price and quantity rise. 
C)price falls and quantity rises. 
D)prices rises and quantity falls.

Quizplus · Accepted Answer

When demand falls, both the equilibrium price and quantity decrease because the demand curve shifts to the left, leading to a lower price and quantity at the new equilibrium point.

-In Figure1.1, If Demand Falls, Then Equilibrium