If Demand for a Good Decreases and Supply Remains Constant

question 131

Multiple Choice

If demand for a good decreases and supply remains constant, equilibrium price:

• A)and quantity will both increase.
• B)will increase, and equilibrium quantity will decrease.
• C)will decrease, and equilibrium quantity will increase.
• D)and quantity will both decrease.

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Definitions:

Farm Program

A government initiative designed to support farmers through subsidies, price support, and other measures.

Farm Employment

Refers to jobs and labor involved in farming operations, including cultivation, planting, and harvesting of crops, as well as raising livestock.

Capital Use

Refers to how effectively a company or economy utilizes its capital resources, including equipment and machinery, for production.

Farmworker

An individual engaged in labor within the agricultural sector, typically involving crop cultivation and livestock rearing.