If demand decreases, ceteris paribus, the quantity exchanged will be ______ at the new market equilibrium point.
A) larger
B) smaller
C) the same
D) either larger or smaller

Question

Quizplus · Accepted Answer

If demand decreases, the demand curve shifts to the left which results in a lower equilibrium price and quantity. Therefore, the new quantity exchanged will be smaller at the new market equilibrium point.

If Demand Decreases, Ceteris Paribus, the Quantity Exchanged Will Be