Asked by Jordan Parker on May 05, 2024
Verified
A decrease in the price of a good will generally result in a(n) :
A) increase in demand.
B) increase in supply.
C) increase in the quantity demanded.
D) increase in the quantity supplied.
Quantity Demanded
The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified time period.
- Evaluate the connection between fluctuations in price and the respective movements along or shifts in the supply and demand curves.
Verified Answer
KA
Kiran AfridiMay 08, 2024
Final Answer :
C
Explanation :
A decrease in price will lead to a movement down along the demand curve, resulting in a higher quantity demanded. This is known as the law of demand. It does not necessarily increase demand or supply, though it might lead to an increase in the quantity supplied as producers may want to sell more at the lower price.
Learning Objectives
- Evaluate the connection between fluctuations in price and the respective movements along or shifts in the supply and demand curves.
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