Impact of Decreased Peanut Demand on Equilibrium Price and Quantity

If the demand for peanuts decreases while the supply remains constant, the equilibrium price and quantity of peanuts will be impacted as follows:

1. Equilibrium Price: With a decrease in demand and a constant supply, there will be downward pressure on the price of peanuts. As consumers demand fewer peanuts, they are willing to pay lower prices for them. This decreased demand will result in a decrease in the equilibrium price of peanuts.

2. Equilibrium Quantity: While the supply remains the same, the decrease in demand will lead to a lower quantity of peanuts being exchanged in the market. Consumers are willing to purchase a smaller quantity of peanuts at the prevailing price. Therefore, the equilibrium quantity of peanuts will decrease.

In summary, a decrease in demand while the supply remains constant will lead to a decrease in the equilibrium price and quantity of peanuts. As consumers demand fewer peanuts, the price will decrease, and the quantity exchanged in the market will decrease to match the lower demand.