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Solution:
With a given supply curve, a decrease in demand causes (c) an overall decrease in price and a decrease in equilibrium quantity.
When there is a decrease in demand, the demand curve shifts to the left. This causes a surplus of goods at the original equilibrium price, and the market price falls to restore equilibrium.
As the price falls, some suppliers will exit the market, and the quantity supplied will decrease.
This process continues until a new equilibrium is established at a lower price and lower quantity.
Therefore, both the price and the equilibrium quantity will decrease.
Option (a) is incorrect because a decrease in demand will result in a decrease in equilibrium quantity, not an increase.
Option (b) is incorrect because a decrease in demand will cause a decrease in price, not an increase.
Option (d) is incorrect because there will be a change in price due to the shift in demand, and a reduction in equilibrium quantity.
Correct option is (c)