If there is a fall in the demand of a good, the equilibrium price is expected to:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. fall.
When there is a fall in the demand for a good, it typically leads to a decrease in its equilibrium price. This is because, with lower demand, sellers may reduce prices to attract buyers and clear their inventories, thereby pushing the equilibrium price downwards.