If consumers are less willing and able to pay for each level of output than they were previously, what is the effect in the market?
A) Demand will decrease.
B) Supply will decrease.
C) Demand will increase.
D) Supply will increase.

Question

Quizplus · Accepted Answer

If consumers are less willing and able to pay for each level of output, this means that their demand has decreased, resulting in a decrease in the quantity demanded. As a result, the demand curve will shift to the left, and the market equilibrium price and quantity will decrease. This is a case of a decrease in demand.

If Consumers Are Less Willing and Able to Pay for Each