question archive A decrease in the equilibrium quantity for a product will result _____
A decrease in the equilibrium quantity for a product will result _____
Subject:MarketingPrice:2.88 Bought3
A decrease in the equilibrium quantity for a product will result _____.
a. when the quantity demanded for the product exceeds the quantity supplied
b. when there is a decrease in supply and a decrease in demand for the product
c. when there is an increase in supply and a decrease in demand for the product
d. when there is a decrease in demand and a decrease in the number of firms producing the product
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b. When there is a decrease in supply and a decrease in demand for the product.
Reason: The decrease in supply and demand for the product will lead to leftward shift in the demand and supply curve. When this happens the equilibrium price may increase decrease or remain constant, but the equilibrium quantity definitely decreases. This happens because, the decrease in supply will decrease the quantity of good in the market. Similarly decrease in demand, will again lead to decrease in quantity. So both the demand and supply forces are working together to decrease the quantity of good in the market.
