In the following question you are asked to determine other t

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product × upon (T) the demand (for, or supply (S) o( x; (2) the equilibrium price (P of X; and the equilibrium quantity (a of X. A decrease in the number of consumers of product X will decrease S, decrease P and decrease Q decrease D, decrease P and decrease Q

Solution

Option 4. Decrease D, Decrease P, Decrease Q

Explanation: A decrease in the number of consumers will result in a leftward shift in the demand curve, so, demand will decrease. This will also reduce the total quantity demanded in the market. Also, a decrease in demand and a constant supply will reduce the price.