What is the expected effect on equilibrium price and quantity when there is a reduction in demand for a product?

Show Answers

Both equilibrium price and quantity will riseBoth equilibrium price and quantity will fallEquilibrium price will rise while quantity fallsEquilibrium price will fall while quantity risesNo change in equilibrium price or quantity

Explanation

When demand decreases, the demand curve shifts leftward, leading to a lower equilibrium price and a smaller quantity sold in the market.