As a result of the recession causing the demand for jelly beans to fall, the effect on the equilibrium price and equilibrium quantity is Price and Quantity Decrease.
When demand falls in a market for a certain good, then the demand curve would shift to the left. As a result of this shift, the demand curve would intersect the supply curve at a lower price and quantity level.
The reason this happens is that as less people demand the jelly beans, suppliers will produce less jelly beans and reduce the prices to encourage more people to buy which leads to a fall in both equilibrium price and quantity.
The equilibrium price in a market refers to the price of goods and services where the quantity supplied in the market is equal to the quantity demanded.
If demand falls in a market for a certain good, then the demand curve would shift to the left. As a result of this shift, the demand curve would intersect the supply curve at a lower price and quantity level.
This is as a result of less people demanding the jelly beans, suppliers will produce less jelly beans and reduce the prices to encourage more people to buy which leads to a fall in both equilibrium price and quantity.
Find out more on the effect of a fall in demand at https://brainly.com/question/24087897
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