A decrease in demand will cause a surplus at the original market price

Question

Quizplus · Accepted Answer

If there is a decrease in demand, it means that fewer people are willing to buy the product at the current market price. As a result, there will be more products available than customers willing to buy them, leading to a surplus. This surplus will put downward pressure on the price, and the market will eventually reach a new equilibrium point with a lower price and quantity exchanged.

A Decrease in Demand Will Cause a Surplus at the Original