Suppose that both the equilibrium price and quantity of ketchup fall. The most consistent explanation for these observations is:
A)a decrease in demand for ketchup with no change in supply.
B)an increase in demand for ketchup with no change in supply.
C)an increase in demand for ketchup and a decrease in the supply of ketchup.
D)an increase in the supply of ketchup with no change in demand.

Question

Quizplus · Accepted Answer

A decrease in demand for ketchup would lead to a lower equilibrium price and quantity, assuming supply remains unchanged.

Suppose That Both the Equilibrium Price and Quantity of Ketchup