A decrease in price of a certain good most likely will lead to
A)an increase in quantity demanded and an increase in demand.
B)an increase in quantity demanded but no change in demand.
C)an increase in demand but no change in quantity demanded.
D)no change in demand and no change in quantity demanded.

Question

Quizplus · Accepted Answer

A decrease in price will always lead to an increase in quantity demanded, as consumers will be more likely to purchase the good at a lower price. However, a decrease in price does not necessarily mean that there will be an increase in demand, which is determined by factors such as consumer preferences and income levels. Therefore, the correct answer is B - an increase in quantity demanded but no change in demand.

A Decrease in Price of a Certain Good Most Likely