A product market is in equilibrium. Suppose the demand for the product decreases. What changes will take place in the market ? Use diagram.

Explanation

`-OP_(1)` is the equilibrium price and `OQ_(1)` is the equilibrium quantity. Demand decreases so that demand curve shifts to the left. The new demand curve is `D_(2)`.
-This creates an excess supply `(A_(1)E_(1)` at the existing price `OP_(1)`.
-The excess supply creates competition among sellers, resulting in fall in price.
-Fall in price leads to rise in demand and fall in supply as indicated by the arrows.
- These change coninue till the market reaches new equilibrium at `E_(2)` with a lower price `OP_(2)` and lower quantity `OP_(2)`.