An increase in the price of a product will reduce the amount of it purchased because:

Question

Quizplus · Accepted Answer

When the price of a product increases, consumers tend to look for similar, less-expensive alternatives, which creates a substitution effect that leads to a decrease in the quantity demanded. This is an example of the law of demand. Therefore, choice C - consumers will substitute other products for the one where price has risen - is the most appropriate answer.

An Increase in the Price of a Product Will Reduce