A decrease in the demand for a good sold in Market A:
A) will affect only Market A.
B) might affect other markets, even those halfway across the world.
C) will not affect Market A, but it will affect nearby markets.
D) might affect distant markets, but it will not affect Market A.

Question

Quizplus · Accepted Answer

A decrease in demand for a good sold in Market A can have a ripple effect on other markets, even those halfway across the world. For example, if Market A is a major consumer of a certain raw material, a decrease in demand could result in lower prices for that material, which could then affect other markets that use that material. Additionally, if Market A is a major exporter of goods, a decrease in demand could lead to economic downturns that cause ripple effects throughout the global economy.

A Decrease in the Demand for a Good Sold in Market