Decrease in Demand:

A decrease in demand shifts the demand curve to the left and when supply conditions remain unchanged then the equilibrium price will fall and the equilibrium quantity will also decrease.

Figure illustrates this. A decrease in the demand for Amala while supply remains the same will shift the demand curve from D₁D₁ to D₂D₂. At the initial market equilibrium price of c6,000, there will be excess demand or shortage of about 30 (50 minus 20) bags which will in turn cause the market equilibrium price to fall to c5,000 and the equilibrium quantity to decrease to 40 bags. Price is held constant and other factors or determinants of demand will lead to decrease in demand (Shift backward).