Suppose that over the next few years the demand for dancing to country and western music decreases.Hence,at country and western dance clubs the equilibrium price of admission ________ and the equilibrium quantity of dancing ________.
A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
E) does not change; decreases

Question

Quizplus · Accepted Answer

If the demand for dancing to country and western music decreases, this will create a surplus of dance club spaces (since there will be fewer people wanting to dance), which will lead to a decrease in the equilibrium price (as dance clubs will have to lower their prices to attract customers). Furthermore, the equilibrium quantity demanded of dancing will also decrease (as fewer people want to dance), leading to a decrease in the equilibrium quantity. Therefore, the correct answer is D.

Suppose That Over the Next Few Years the Demand for Dancing