What can cause the equilibrium quantity of a good to fall?
A) An increase in demand or an increase in supply
B) A decrease in demand or a decrease in supply
C) An increase in demand or a decrease in supply
D) A decrease in demand or an increase in supply

Question

Quizplus · Accepted Answer

A decrease in demand leads to lower quantities being bought at every price, shifting the demand curve leftward. A decrease in supply leads to lower quantities being available at every price, shifting the supply curve leftward. Both scenarios result in a lower equilibrium quantity.

What Can Cause the Equilibrium Quantity of a Good to Fall