A decrease in the equilibrium quantity for a product will result when:
A)the quantity demanded for the product exceeds the quantity supplied.
B)there is a decrease in supply and a decrease in demand for the product.
C)there is an increase in supply and a decrease in demand for the product.
D)there is a decrease in demand and a decrease in the number of firms producing the product.

Question

Quizplus · Accepted Answer

A decrease in both supply and demand for a product will lead to a decrease in the equilibrium quantity, as both factors contribute to lowering the amount of the product that is bought and sold in the market.

A Decrease in the Equilibrium Quantity for a Product Will