A decrease in demand leads to a(n):

Name: A decrease in demand leads to a(n):
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Question

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A decrease in demand means that consumers are less willing to purchase the good at its current price. In order to entice them to buy, producers will have to lower the price, resulting in a decreased equilibrium price. Additionally, since there is less demand, producers will have to decrease the quantity supplied in order to avoid excess inventory, resulting in a decreased equilibrium quantity.

A Decrease in Demand Leads to A(n)