Consumers buy less of a good as its price increases because
A) production costs have risen.
B) substitute goods are now relatively cheaper.
C) the income of consumers has effectively risen.
D) the higher price will make the good more valuable to each consumer.

Question

Quizplus · Accepted Answer

As the price of a good increases, substitute goods become relatively cheaper, leading consumers to switch to these alternatives, resulting in a decrease in the quantity demanded of the original good.

Consumers Buy Less of a Good as Its Price Increases