If there is a decrease in demand
A)firms would be willing to supply less of the good than before at each possible price.
B)buyers are willing to purchase less of the good than before at each possible price.
C)buyer's taste for the good has increased.
D)the price of the product has increased, causing consumers to buy less of the product.

Question

If there is a decrease in demand
A)​firms would be willing to supply less of the good than before at each possible price.
B)​buyers are willing to purchase less of the good than before at each possible price.
C)​buyer's taste for the good has increased.
D)​the price of the product has increased, causing consumers to buy less of the product.

Quizplus · Accepted Answer

A decrease in demand means that buyers are less willing to purchase the good at the same price levels as before. This would result in a decrease in the quantity demanded at each price point, leading to a leftward shift of the demand curve. Firms would need to adjust the quantity they supply to meet the decreased demand, which may involve producing less of the good. However, this is a result of the decrease in demand, rather than a cause of it. Choice A is incorrect because a decrease in demand does not necessarily mean that firms would be willing to supply less at each possible price; it depends on the marginal costs of production. Choice C is incorrect because an increase in buyers' taste for the good would result in an increase in demand, not a decrease. Choice D is also incorrect because a decrease in demand would generally cause the price to decrease, as suppliers seek to incentivize buyers to purchase more of the good.

If There Is a Decrease in Demand