When the Demand for a Good Decreases, Its Equilibrium Price

question 53

Multiple Choice

When the demand for a good decreases, its equilibrium price ________ and equilibrium quantity________.

• A)falls; increases
• B)rises; increases
• C)rises; decreases
• D)falls; decreases

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Definitions:

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, typically includes product, price, place, and promotion.

Right Price

The optimal price point that balances profitability with customer satisfaction and demand, taking into consideration the cost of production, market conditions, and competition.

Appropriate Level

The suitable or right level or position for a specific purpose, often within an organizational or system context.

Variable Costs

Expenses that change in proportion to the activity or volume of production in a business.