A decrease in the demand for a product will lead to a decrease in both the price and the quantity traded.

Question

Quizplus · Accepted Answer

When the demand for a product decreases, there will be an excess supply of the product in the market, which will push the price down. As the price decreases, the quantity demanded by consumers may increase; however, the quantity traded in the market will still decrease as it is limited by the lower demand. Therefore, both the price and the quantity traded will decrease.

A Decrease in the Demand for a Product Will Lead