A Decrease in Demand Will Result in A(n)

question 126

Multiple Choice

A decrease in demand will result in a(n)

• A)increase in equilibrium price and quantity
• B)decrease in equilibrium price and quantity
• C)decrease in equilibrium price and an increase in equilibrium quantity
• D)increase in equilibrium price and a decrease in equilibrium quantity
• E)change in equilibrium price and quantity only if supply changes too

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Definitions:

Interest Rate

The percentage charged on a sum of money borrowed or earned on deposited funds over a period of time.

Utility Function

A representation in economics that shows the relationship between the utility (satisfaction) individuals receive from consuming goods and services and different consumption bundles.

Consumption

The action of using goods and services to satisfy needs or desires.

Income

Receipts from labor or investments, typically disbursed at regular intervals.