A decrease in the demand for bananas with no concurrent change in the supply of bananas will result in a ________ equilibrium price and a(n) ________ equilibrium quantity.
A)higher; lower
B)lower; lower
C)higher; unchanged
D)higher; higher

Question

Quizplus · Accepted Answer

When there is a decrease in demand and no change in supply, the market equilibrium point moves towards the intersection of the new demand and supply curves. This results in a lower equilibrium price and quantity. Hence, the correct choice is B.

A Decrease in the Demand for Bananas with No Concurrent