When demand falls and supply stays the same,

Question

Quizplus · Accepted Answer

When demand falls and supply stays the same, the equilibrium price and quantity will both decrease. This is because there is less demand for the product, so producers will need to lower the price to entice consumers to buy. As the price decreases, the quantity demanded will increase until it reaches a new equilibrium point where the quantity demanded equals the quantity supplied. Therefore, the equilibrium quantity will fall.

When Demand Falls and Supply Stays the Same