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a decrease in demand means that quantity demanded falls

a decrease in demand means that quantity demanded falls

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Answer #1

A decrease in demand means that there is a overall shift in the demand curve. So at the same price, the quantity demanded reduces. This means that the demand curve shifts to the left. Keeping all other factors constant, it means that the quantity demanded falls.

However, if there is a shift in the supply side so that the cost of production of the service goes down, this leads the suppliers to supply many more products at the same price. This shifts the supply curve to the right. As a result, the quantity demanded may increase in spite of the fall in demand.

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