When demand falls and supply remains the same,equilibrium price _______ and equilibrium quantity ________.

Question

Quizplus · Accepted Answer

When demand falls and supply remains the same, there is now an excess supply of the product. To get rid of the surplus, suppliers will lower their prices which causes the equilibrium price to fall. Due to lower price levels, the quantity demanded will increase as customers are now willing to purchase more of the product, causing the equilibrium quantity to fall as well.

When Demand Falls and Supply Remains the Same,equilibrium Price _______