If the demand for a good decreased, what would be the effect on the equilibrium price and quantity?

a. Price would increase, and quantity would decrease.
b. Price would decrease, and quantity would decrease.
c. Price would increase, and quantity would increase.
d. Price would decrease, and quantity would increase.

b

Economics

You might also like to view...

People will typically buy more of a product if the price increases.

a. true b. false

Economics

Lizzie's budget line is shown in the figure above. If the price of a magazine rises, Lizzie's real income in terms of magazines books ________ and her real income in terms of cookies ________

A) increases; does not change B) decreases; does not change C) decreases; increases D) increases; decreases

Economics