If equilibrium price falls and the equilibrium quantity of the good purchased decreases, what has happened to either the supply curve or to the demand curve?
A) Supply increased.
B) Demand decreased.
C) Demand increased.
D) Supply decreased.

Question

Quizplus · Accepted Answer

A decrease in both equilibrium price and equilibrium quantity suggests a decrease in demand, as opposed to an increase in supply which would cause equilibrium price to decrease but equilibrium quantity to increase.

If Equilibrium Price Falls and the Equilibrium Quantity of the Good