A decrease in demand

Question

Quizplus · Accepted Answer

A decrease in demand means that the demand curve shifts to the left, indicating that consumers are willing and able to purchase less of the item at each price point. This does not result from a decrease in supply, which is a separate factor. It also does not increase the quantity sold in the market since demand and quantity are inversely related. An increasing consumer preference for the item would result in an increase in demand, not a decrease. Finally, a decrease in demand causes the equilibrium price to fall, as there is now a surplus of the item in the market.

A Decrease in Demand