Ceteris paribus, if the market demand for a product decreases, what will happen to the equilibrium quantity and equilibrium price?

Question

Quizplus · Accepted Answer

If the market demand for a product decreases, this means that consumers are willing to buy less of the product at a given price. As a result, there will be a surplus of the product, and sellers will need to lower the price in order to sell their goods. This will lead to a decrease in both the equilibrium quantity (the amount of the product that is bought and sold at the equilibrium price) and the equilibrium price (the price at which the quantity demanded equals the quantity supplied).

Ceteris Paribus, If the Market Demand for a Product Decreases