Asked by
Samantha Solomon
on Dec 11, 2024
Verified
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.
Equilibrium Price
The cost at which the amount of a product wanted by buyers matches the amount provided by sellers, leading to equilibrium in the market.
Demand
The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.
- Assimilate the effects that changes in supply and demand have on market equilibrium prices and quantities.
- Evaluate market outcomes based on changes in consumer preferences and income.
Verified Answer
JA
Learning Objectives
- Assimilate the effects that changes in supply and demand have on market equilibrium prices and quantities.
- Evaluate market outcomes based on changes in consumer preferences and income.