For a given market, the equilibrium quantity of the good or service will decrease if _____.(1 point)

Question

Responses

demand increases and supply increases
demand increases and supply increases

demand increases and supply decreases
demand increases and supply decreases

demand decreases and supply increases
demand decreases and supply increases

demand decreases and supply decreases

Answer 1

The equilibrium quantity of the good or service will decrease if demand decreases and supply increases.

When demand decreases, consumers want to purchase less of the good at every price level, leading to a lower equilibrium quantity. On the other hand, an increase in supply means that producers are willing to sell more at every price level, but if demand decreases significantly, the overall equilibrium quantity will still decline.