Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 4 - Demand, Supply, and Market Equilibrium - Exercises - 4.6 Predicting and Explaining Market Changes - Page 95: 6.12

Answer

Because both price and quantity decreased, we know the cause is a decrease in demand.

Work Step by Step

If Koppel were correct when he blamed the price decrease on a larger supply of drugs, the quantity of drugs consumed would have increased.
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