According to the law of demand,if a firm reduces the price of its good:
A)consumers in the market will demand more units of the good.
B)some consumers will exit the market.
C)consumers will demand fewer units than before the price cut.
D)the quantity of goods produced and sold by the firm will decline.
E)competing firms will increase prices.

Question

Quizplus · Accepted Answer

The law of demand states that as the price of a good decreases, the quantity demanded of that good will increase, holding all other factors constant. Therefore, if a firm reduces the price of its good, consumers in the market will demand more units of the good.

According to the Law of Demand,if a Firm Reduces the Price