Figure 3-8
-A decrease in the equilibrium quantity for a product will result
A) when the quantity demanded for the product exceeds the quantity supplied.
B) when there is a decrease in supply and a decrease in demand for the product.
C) when there is an increase in supply and a decrease in demand for the product.
D) when there is a decrease in demand and a decrease in the number of firms producing the product.

Question

Figure 3-8 
-A decrease in the equilibrium quantity for a product will result
A) when the quantity demanded for the product exceeds the quantity supplied. 
B) when there is a decrease in supply and a decrease in demand for the product. 
C) when there is an increase in supply and a decrease in demand for the product. 
D) when there is a decrease in demand and a decrease in the number of firms producing the product.

Quizplus · Accepted Answer

A decrease in both supply and demand will lead to a decrease in the equilibrium quantity, as both shifts reduce the quantity exchanged in the market.

Figure 3-8 -A Decrease in the Equilibrium Quantity for a Product Will