Question

On a supply and demand graph, if the demand curve shifts to the left, what would be the resulting effec

Answer 1

Answer:

A).price will fall and quantity will fall

Explanation:

A reduction in demand causes the demand curve to shift to the left. The demand for a good may decrease due to a fall in incomes( assuming a normal good), a rise in the price of a substitute commodity, increases in the price of a compliment product, or changes in customer preferences.

Reduction in demand means a product is less desirable in the market. Its price will fall as sellers try to woe buyers to purchase it. The quantity supplied will also decline as few customers will be willing to buy the product.