When the demand for a good decrease, its equilibrium price ______ and equilibrium quantity ______?

Lecturer Economics Past Papers and Syllabus / All — Multiple-choice practice

جب کسی چیز کی طلب کم ہو جائے تو اس کی توازنی قیمت اور مقدار پر کیا اثر پڑتا ہے؟

  1. A. Falls; decreases
  2. B. Falls; increases
  3. C. Rises; decreases
  4. D. None of these

Correct answer

Falls; decreases

Explanation

Explanation Demand shows consumers’ willingness to buy a good. When demand decreases , the demand curve shifts left. This reduces pressure on price in the market. Both price and quantity adjust to a new equilibrium. As a result, price falls and quantity decreases . Last verified on 22-04-2026

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