If the demand for a good decreased, what would be the effect on the equilibrium price and quantity? -Price would increase, and quantity would decrease. -Price would decrease, and quantity would decrease. – Price would increase, and quantity would increase. -Price would decrease, and quantity would increase.

• Price would decrease, and quantity would decrease.

Explanation:

When demand for a good decreases, the demand curve shifts to the left. This means that at any price, the consumer place a lower value on the good than before, and the producers are willing to accept lower price. Thus, we expect a decrease in equilibrium price. Eventually, less products are being sold in the market when demand decreases, which means the suppliers will also produce less of the commodity which decreases equilibrium quantity as well.