When the demand for an asset decreases moderately while the supply remains constant, a surplus occurs. This surplus happens because there are more units of the asset available than market participants want to build position in the asset. As a result, the price of the asset tends to fall. This price decrease is a natural response to the lower demand, as sellers reduce prices to attract buyers and clear the excess positions.

Key Points:
• Moderate Decrease in Demand: Fewer market participants want to build position in the asset, but the decrease is not drastic.
• Constant Supply: The number of available units does not change.
• Surplus: The supply exceeds the demand, leading to an excess of the asset.
• Price Decrease: Due to the surplus, sellers lower the price to attract buyers and reduce the excess positions.

When there is a moderate decrease in the demand for an asset, but the supply remains constant, it results in a situation where the available quantity exceeds the demand. This creates a surplus, meaning there are more units available than market participants are willing to build positions. Due to this excess supply, sellers may lower the price to attract buyers and reduce the surplus. Consequently, the price of the asset will decrease until the market reaches a new equilibrium where the supply matches the reduced demand.