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The population in a coastal town decreased last year. As a result, local store owners noticed a(n) _____ in the quantity demanded of goods and services.

A) increase
B) decrease

User Akbsmile
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2 Answers

5 votes

I believe the answer to DECREASE

User Yekanchi
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2 votes

Decreased demand.

The supply of goods and services corresponds to the demand for goods and services. Thus, production and supply depend on demand. This is intuitive, a good will only be sold if there is someone who buys it.

In the issue presented, there is a decrease in the birth rate of the city. This will have a social and economic reflection. There will be less work force and fewer people to buy. Consequently, there will be a lower demand for goods and services, which will be perceived by store owners.

User Joe Grund
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