If the price of a good decreases and the quantity of the good exchanged on markets decreases, then the most likely explanation is that there has been
A) an increase in demand.
B) a decrease in demand.
C) an increase in supply.
D) a decrease in supply.

Question

Quizplus · Accepted Answer

When both the price and quantity of a good decrease, it typically indicates a decrease in demand. This is because less of the good is being sought by consumers at any price, leading to a lower equilibrium price and quantity in the market.

If the Price of a Good Decreases and the Quantity