A Decrease in Demand Will Cause the Equilibrium Price and Quantity

question 88

True/False

A decrease in demand will cause the equilibrium price and quantity of a good to fall, ceteris paribus.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount that they actually pay.

Priced At

The specified cost at which a good or service is offered for sale in the market.

Surplus

The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific (above-equilibrium) price.

Consumer Surplus

The gap between what consumers are prepared and capable of paying for a product or service and the actual amount they end up paying.