-Refer to the above graph to answer this question.How could you describe the movement from point C to point D?
A)A decrease in demand which leads to a decrease in the equilibrium price and a decrease in supply.
B)A decrease in supply which leads to an increase in the equilibrium price and a decrease in demand.
C)A decrease in demand which leads to a decrease in the equilibrium price and a decrease in the quantity supplied.
D)A decrease in supply which leads to a decrease in the equilibrium price and a decrease in the quantity demanded.
E)A decrease in demand which leads to an increase in the equilibrium price and a decrease in supply.

Question

-Refer to the above graph to answer this question.How could you describe the movement from point C to point D?
A)A decrease in demand which leads to a decrease in the equilibrium price and a decrease in supply. 
B)A decrease in supply which leads to an increase in the equilibrium price and a decrease in demand. 
C)A decrease in demand which leads to a decrease in the equilibrium price and a decrease in the quantity supplied. 
D)A decrease in supply which leads to a decrease in the equilibrium price and a decrease in the quantity demanded. 
E)A decrease in demand which leads to an increase in the equilibrium price and a decrease in supply.

Quizplus · Accepted Answer

The movement from point C to point D, characterized by a decrease in demand, results in a lower equilibrium price and a reduction in the quantity supplied, as suppliers adjust to the decreased demand at the new lower price point.

-Refer to the Above Graph to Answer This Question