Holding everything else constant, a decrease in the price of bicycles will result in

Question

Quizplus · Accepted Answer

According to the law of demand, a decrease in price will lead to an increase in quantity demanded, holding everything else constant. Therefore, the correct answer is D. Option A is incorrect because a decrease in price would increase the demand for bicycles. Option B is incorrect because the decrease in price would not change the demand, but rather the quantity demanded. Option C is incorrect because a decrease in price would not reduce the supply of bicycles.

Holding Everything Else Constant, a Decrease in the Price of Bicycles