Question

a decrease in demand will cause a decrease in price which will cause a decrease in supply?​

Answer 1

Answer:

A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined. For any quantity, consumers now place a lower value on the good, and producers are willing to accept a lower price t herefore, price will fall.

Answer 2

Explanation:

The decrease in demand causes excess supply to develop at the initial price. a. Excess supply will cause price to fall, and as price falls producers are willing to supply less of the good, thereby decreasing output.