Which of the following is most likely to occur as a result of a decrease in the equilibrium price for a product?

• A. Producers will increase production.
• B. The quantity supplied will decrease.
• C. The market will experience a surplus.
• D. The quantity demanded will decrease.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of equilibrium price, which is the price at which the quantity demanded by consumers equals the quantity supplied by producers.
2. Step 2: Recognize that a decrease in the equilibrium price means the market price is lower than before, affecting both quantity demanded and quantity supplied.
3. Step 3: Recall the law of supply, which states that producers are willing to supply more of a product at higher prices and less at lower prices. Therefore, a decrease in price typically leads to a decrease in quantity supplied.
4. Step 4: Consider the law of demand, which states that consumers will demand more of a product at lower prices, so quantity demanded usually increases when price decreases.
5. Step 5: Analyze the options: since price decreased, quantity supplied decreases (not increases), quantity demanded increases (not decreases), and a surplus (excess supply) is unlikely because lower prices reduce supply and increase demand.