A decrease in demand for a products should ?
Correct answer: B. Decrease equilibrium price and quantity
- A. increase equilibrium price and quantity
- B. Decrease equilibrium price and quantity
- C. Increase equilibrium price and decrease quantity
- D. Decrease equilibrium price and increase quantity
Explanation
A decrease in demand shifts the demand curve leftward; with supply unchanged, both the equilibrium price and equilibrium quantity fall.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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