The price of automobiles has increased sharply lately. As a result, what have automobile dealers noticed?
A) Demand has decreased.
B) Demand has increased.
C) Quantity demanded has increased.
D) Quantity demanded has decreased.

Question

Quizplus · Accepted Answer

When prices of goods or services increase sharply, consumers are likely to reduce their demand or quantity demanded for it. As a result, automobile dealers would notice a decrease in the quantity demanded for automobiles.

The Price of Automobiles Has Increased Sharply Lately