A decrease in demand will cause the equilibrium price to ________ and the equilibrium quantity to ________.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Question

Quizplus · Accepted Answer

A decrease in demand leads to a lower equilibrium price and a lower equilibrium quantity, as the demand curve shifts leftward, reducing the price and quantity at which the market clears.

A Decrease in Demand Will Cause the Equilibrium Price to ________