If the price of a good falls, what happens in the new consumer equilibrium??

Answer 1

The answer to every economics question is 'it depends'. In this case, it depends on why the price fell (if this is a school assignment, then it is almost certainly a 'trick' question).

It could be because supply increased (the supply curve moved right), in which case more will be sold and the price falls.

If the price fell because demand fell, (ie the demand curve moved left) then the quantity sold will decline and the price will fall.

Answer 2

The product gets sold. People buy more of them. More expensive, competitive products do not get sold. So then their price falls.

In the meantime, consumers have a little more cash to buy other non-competing products.

In other words, if the price of washing machines drops, people have more money to buy clothes dryers. Or pay off their credit card. Or buy ownership in a company via a retirement mutual fund.

This will increase the demand for such products, which will ultimately make them a bit more expensive. Then the consumers will quite buying them, and they will in turn drop in value, depending on their supply and demand.

Over the long term, prices are kept under control by competition among competing goods, and also among differing goods in relationship to disposable capital. That's about as equilibrium as you can get in the real world.