When the price of a good decreases:
A) the quantity demanded increases.
B) demand increases.
C) the quantity supplied increases.
D) supply increases.

Question

Quizplus · Accepted Answer

When the price of a good decreases, the quantity demanded increases. This is because as the price decreases, the good becomes more affordable and consumers are willing and able to purchase more of it. However, the decrease in price does not necessarily cause an increase in demand, which refers to the overall willingness and ability of consumers to purchase the good at various prices.

When the Price of a Good Decreases