Question

if the demand for a product decreases, what is likely to happen?
a. the supply is likely to increase.
b. the demand is likely to be inelastic.
c. the price is likely to increase.
d. the price is likely to decrease.

Explanation:

In basic market economics, when the demand for a product decreases (with supply remaining constant), the demand curve shifts left. This creates a surplus at the original price, and market forces push the price down to reach a new equilibrium. Option A is incorrect because a demand decrease does not directly cause supply to increase. Option B is irrelevant as demand elasticity describes responsiveness, not the outcome of a demand shift. Option C is the opposite of the correct outcome.

Answer:

D. The price is likely to decrease.