2.1 As price falls, quantity demanded for a normal good will fall. 2.2 A fall in the price of a substitute good will cause an inward shift in the demand for a product. 2.3 When the current market price is above the equilibrium price, there will tend to be excess supply.

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.