When demand decreases, which statement is least likely to occur?

When demand decreases, which statement is least likely to occur?

• A. The demand curve would shift to the left
• B. The equilibrium price would fall
• C. The equilibrium quantity would decrease
• D. The demand curve would shift to the right

Answer: (D)

A decrease in demand is shown by the demand curve shifting to the left, meaning at every price, fewer units are demanded. With the supply curve unchanged, this leftward shift moves the market to a new intersection that is lower on both price and quantity, so the equilibrium price falls and the equilibrium quantity falls as well. The statement that would be least likely is that the demand curve shifts to the right, because a rightward shift indicates an increase in demand, not a decrease.

A decrease in demand is shown by the demand curve shifting to the left, meaning at every price, fewer units are demanded. With the supply curve unchanged, this leftward shift moves the market to a new intersection that is lower on both price and quantity, so the equilibrium price falls and the equilibrium quantity falls as well. The statement that would be least likely is that the demand curve shifts to the right, because a rightward shift indicates an increase in demand, not a decrease.