Answer:
An excess of supply increases
Step-by-step explanation:
When demand decreases, there is usually an excess of supply, which means that there are more goods or services available than consumers want to purchase. In response to the decrease in demand, suppliers often reduce their prices in order to encourage consumers to buy more of the product or service. This reduction in prices may lead to a decrease in the quantity of goods or services supplied in the market, as suppliers may be less willing to produce the same quantity of goods or services at a lower price.
If the decrease in demand is severe, and there is a surplus of goods or services in the market, suppliers may also reduce production levels in order to avoid accumulating excess inventory. This reduction in production can lead to a decrease in the overall supply of the good or service, as suppliers may choose to produce less until demand picks up again. In summary, a decrease in demand typically leads to a decrease in supply in the short run, but the extent to which this occurs will depend on a number of factors, including the type of product or service being sold, the level of competition in the market, and the costs associated with production.