Which would best explain a decrease in both the price and the quantity of a product over a period of time?
A) a decrease in people's incomes, and the product is an inferior good
B) a long strike by workers who make the product
C) a decrease in the price of a substitute good
D) a technological improvement in production methods

Question

Quizplus · Accepted Answer

A decrease in the price of a substitute good would lead consumers to switch to the cheaper alternative, reducing demand for the original product and causing both the price and quantity to decrease.

Which Would Best Explain a Decrease in Both the Price