A few days ago
mike

A decrease in the demand for product X will:?

a) cause the equilibrium price of product X to rise

b) cause the equilibrium price of product X to fall

c) cause the equilibrium quantity of product X to rise

d) cause the equilibrium quantity of product X to fall

e) (b) and (d)

This question has me confused, and help to get my mind thinking straight will be appreciated.

Top 1 Answers
A few days ago
Mr. Math Contributor

Favorite Answer

More demand = Less price

Less demand = More price

However, the equilibrium deals with graph. Please refer to your textbook to see the equilibrium graph.

As you can see there, the price is down as there is less demand, therefore, the equilibrium will go up

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