Question

If the demand for a good decreased, what would be the effect on the equilibrium price and quantity? Group of answer choices Price would increase, and quantity would decrease. Price would increase, and quantity would increase. Price would decrease, and quantity would decrease. Price would decrease, and quantity would increase.

Answer 1

Answer:

The answer is C. Price would decrease, and quantity would decrease

Explanation:

When the demand for a good decreases, the equilibrium price will decrease and equilibrium quantity too will decrease.

The decrease in demand results in excess supply at the prevailing market price and excess supply will make price to drop and if this happens, the law of supply (the lower the price the lower the quantity supplied) will come to play, thereby decreasing quantity supplied.