A decrease in demand, as shown to the right, would cause both the
equilibrium price and the equilibrium quantity to fall.
This will be the result, any time demand falls. Likewise, both
falling price and quantity (bought and sold) are indicative of a
reduction in demand. In order to explain this sort of market adjustment,
one should look for factors that reduce demand.
Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved