consider the pizza market shown in the graph at right. a decrease in the demand for pizza will the…
consider the pizza market shown in the graph at right. a decrease in the demand for pizza will the equilibrium price and the equilibrium quantity. a. increase, decrease b. decrease, maintain c. decrease, decrease d. increase, increase
Answer
Brief Explanations:
In a market - when demand decreases, the demand curve shifts to the left. At the original equilibrium, there is now a surplus. Sellers will lower the price to sell off the excess inventory. As the price decreases, the quantity supplied also decreases according to the law of supply. This leads to a new equilibrium with a lower price and a lower quantity.
Answer:
C. decrease, decrease