A decrease in demand for cheese will create:

Question

Quizplus · Accepted Answer

When there is a decrease in demand for cheese, there will be an excess supply at the original equilibrium price because the suppliers will continue to produce the same amount of cheese, but the consumers will not be interested in buying it at the same price as before. Therefore, the suppliers will have to lower the price to attract buyers and clear the excess inventory. This will result in a new equilibrium with a lower price and quantity of cheese consumed.

A Decrease in Demand for Cheese Will Create