Question

What will a decrease in the demand for a final product cause?

What will a decrease in the demand for a final product cause?

Homework Answers

Answer #1

Decrease in the demand for a final product will shift the demand curve leftward and as a result, quantitity purchased of that product will decrease by a certain amount (assuming price remains the same).

Also, decrease in demand for a final product, decreases Consumption spending on that final good and as a result, GDP (GDP measures the value of the final goods and services produced within an economy in a given period of time) will decrease.

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