With a decrease in demand there is __________.

CA Foundation · Business Economics · PYQS · January 2025
With a decrease in demand there is __________.
(A) A. an overall decrease in price but an increase in equilibrium quantity.
(B) B. an overall increase in price but a decrease in equilibrium quantity.
(C) C. a decrease in the equilibrium price and quantity demanded and supplied.
(D) D. no change in overall price but a reduction in equilibrium quantity.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. a decrease in the equilibrium price and quantity demanded and supplied.

Topics: Theory of Demand and Supply

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