If the demand for a product falls and the supply stays the same
A) the market clearing price will fall and the equilibrium quantity will rise.
B) the market clearing price will rise and the equilibrium quantity will fall.
C) both the market clearing price and the equilibrium quantity will fall.
D) both the market clearing price and the equilibrium quantity will rise.

Question

Quizplus · Accepted Answer

When demand for a product decreases while supply remains constant, the market clearing price will fall because sellers are willing to accept lower prices to sell their products. The equilibrium quantity will also fall because there is less demand for the product at any given price, leading to fewer transactions.

If the Demand for a Product Falls and the Supply