Under normal downward sloping demand curve and fully elastic supply curve of a commodity, an exogenous decrease in demand would lead to (a) increase in equilibrium price and quantity (b) decrease in equilibrium price and quantity (c) decrease in equilibri

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Q: 72 (CDS-I/2024)
Under normal downward sloping demand curve and fully elastic supply curve of a commodity, an exogenous decrease in demand would lead to
(a) increase in equilibrium price and quantity
(b) decrease in equilibrium price and quantity
(c) decrease in equilibrium quantity and no change in price
(d) increase in equilibrium price and no change in quantity

question_subject: 

Economics

question_exam: 

CDS-I

In a normal downward sloping demand curve, a decrease in demand shifts the demand curve to the left. With a fully elastic supply curve, the new equilibrium point moves along the supply curve, leading to a decrease in both equilibrium price and quantity.