Final answer:
A decrease in the popularity of ice skating would lead to a leftward shift of the demand curve for ice skates, indicating a decrease in demand at all price levels, ultimately resulting in a lower equilibrium price and quantity for ice skates in the market.
Step-by-step explanation:
If ice skating becomes less popular, the demand for ice skates would decrease. This is not just a change in the quantity demanded at a specific price, but a shift in the entire demand curve to the left. This shift represents a decrease in demand at every price level, which is distinguished from a movement along the demand curve that would result from a change in price. Similarly, if ice skating were to become more popular, we would expect to see an increase in demand for ice skates, shifting the demand curve to the right.
Following the law of demand, a change in preferences that makes ice skating less appealing would result in fewer ice skates being sold at every given price. As ice skates are not being sold, we would likely observe a surplus in the market, which might lead to sellers lowering prices to clear out excess inventory. Ultimately, this leads to a lower equilibrium price and quantity for ice skates in the market.