If the Demand for a Good Decreased, What Would Be

question 326

Multiple Choice

If the demand for a good decreased, what would be the effect on the equilibrium price and quantity?

• A) Price would increase, and quantity would decrease.
• B) Price would decrease, and quantity would decrease.
• C) Price would increase, and quantity would increase.
• D) Price would decrease, and quantity would increase.

---

Definitions:

Profit Margin

A financial ratio indicating the percentage of revenue that exceeds the costs associated with making or buying the goods sold.

Gross Margin Ratio

A financial metric showing the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company’s core operations.

Profit Margin

Profit Margin indicates the percentage of revenue that remains as profit after all expenses are deducted, showcasing a company's efficiency in generating profit from sales.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been deducted from its total revenue.