When demand decreases, price falls and quantity supplied decreases.

Name: When demand decreases, price falls and quantity supplied decreases.
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Question

Quizplus · Accepted Answer

This is due to the law of supply and demand, which states that as demand decreases, the price will also decrease in order to try to stimulate demand. As the price decreases, some suppliers may choose to reduce the amount of goods or services they produce, leading to a decrease in quantity supplied.

When Demand Decreases, Price Falls and Quantity Supplied Decreases