Suppose the equilibrium price and equilibrium quantity of gold both decrease. Which of the following would produce such a change? A. The market supply curve for gold could have decreased or the market demand curve for gold could have decreased. B. The market supply curve for gold could have decreased or the market demand curve for gold could have increased. C. The market supply curve for gold could have increased. D. The market demand curve for gold could have decreased. E. The market demand curve for gold could have increased.

The demand and supply curve helps to determine the equilibrium quantity and price. A shift in demand and supply curve can disrupt the equilibrium quantity and price. In the above scenario, a downward shift in the demand curve can decrease the equilibrium price and quantity of the gold. A downward shift in the demand curve changes the equilibrium point by shifting the equilibrium price and quantity.

marvineetesh3 marvineetesh3 · Answer 2 · 2025-04-08T16:14:52-04:00

Equilibrium price and equilibrium quantity of gold both decrease as a result, The market demand curve for gold could have decreased.

What is the reason of shifting in demand curve?

The demand and supply curves supports to determine the equilibrium quantity and price.

A shift in demand and supply curve can break in the equilibrium quantity and price.

In the above script, a downward shift in the demand curve can decrease the equilibrium price and quantity of the gold.

A downward shift in the demand curve changes the equilibrium point from higher to lower by shifting the equilibrium price and quantity.

Therefore, If equilibrium price and equilibrium quantity of gold both decrease it will result in shift in demand curve to its leftwards, as demand curve shift, equilibrium point also change.

Hence, the option [D] is correct.

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