Question: 5 Price A B D2 Quantity 1. A decrease in demand from D, to D2 results in ( excess demand 2. This causes the price

5 Price A B D2 Quantity 1. A decrease in demand from D, to D2 results in ( excess demand 2. This causes the price to ( fall 3. This change in price results in ( an increase in quantity demanded along the D2 demand curve. 4. This change in price results in ( an increase in quantity supplied. 5. The new equilibrium has a ( higher price and a higher quantity : when compared to the original equilibrium. 6. Does this refute the law of demand? ( No 7. Why v (Click to select Because the new equilibrium has a lower price and quantity Because there was a change in demand Mc graw Prev

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