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.

Question

Quizplus · Accepted Answer

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.

A Decrease in the Price of a Good Will Generally