In the following question you are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1)the demand (D)for,or supply (S)of,X; (2)the equilibrium price (P)of X;and (3)the equilibrium quantity (Q)of X. Refer to the given information.A decrease in the number of consumers of product X will:

Question

Quizplus · Accepted Answer

A decrease in the number of consumers will lead to a decrease in demand for product X (D), causing a leftward shift in the demand curve. As a result, the equilibrium price (P) and equilibrium quantity (Q) of X will both decrease. This is because, with lower demand, sellers will have to lower the price to sell the same quantity, resulting in a new equilibrium at a lower price and quantity. Therefore, choice C is the correct answer.

In the Following Question You Are Asked to Determine,other Things