Answer:
Market Demand for Cookies fall .
Explanation:
Markets are at equilibrium when Market Demand = Market Supply.
Equilibrium price & quantity are found out at the point of intersection of upward sloping demand curve & downward sloping supply curve.
Given, market for cookies is initially in equilibrium. If demand for cookies fall, the downward sloping demand curve shifts leftwards. Leftward shift in demand creates excess supply (supply > demand) at equilibrium price. This leads to competition among sellers & reduces the price. The new equilibrium is established at intersection of new demand curve & supply curve, at a lower equilibrium price & lesser equilibrium quantity.
