Which of the following statements is correct? (Assume demand is interacting with an upward sloping supply curve that does not shift.)
A) If demand increases, then price will decrease.
B) If demand decreases, then price will decrease.
C) If price increases, then demand will decrease.
D) If price decreases, then demand will decrease.

Question

Quizplus · Accepted Answer

CB) When demand decreases, the demand curve shifts to the left, leading to a lower equilibrium price and quantity, assuming the supply curve does not shift.C) According to the law of demand, if the price of a good increases, ceteris paribus, the quantity demanded of that good will decrease. This is a fundamental principle of economics that describes the inverse relationship between price and quantity demanded.

Which of the Following Statements Is Correct? (Assume Demand Is