When there is decrease in demand, the demand curve

The correct answer is A.

When there is a decrease in demand, the demand curve shifts downwards towards the axis. This means that at each price, consumers are willing and able to buy less of the good.

There are a number of factors that can cause a decrease in demand, such as:

• A decrease in income: If people have less money to spend, they will generally buy less of everything, including the good in question.
• An increase in the price of substitutes: If the price of a substitute good increases, consumers will be more likely to buy the good in question instead.
• A decrease in the price of complements: If the price of a complement good decreases, consumers will be more likely to buy both the good in question and the complement good.
• A change in consumer tastes: If consumers’ preferences for the good decrease, they will be willing and able to buy less of it.

A decrease in demand will lead to a decrease in equilibrium price and quantity. This is because at the original equilibrium price, there will now be a surplus of the good. This surplus will cause the price to fall until the quantity demanded equals the quantity supplied.

I hope this explanation is helpful. Please let me know if you have any other questions.