A "decrease in the quantity demanded" means that
A) the demand curve has shifted to the right.
B) the supply curve has shifted to the left.
C) price has declined and consumers therefore want to purchase more of the good.
D) price has increased and consumers therefore want to purchase less of the good.

Question

Quizplus · Accepted Answer

A decrease in the quantity demanded is caused by an increase in price. Therefore, consumers want to purchase less of the good because it has become relatively more expensive. Choice A is incorrect because a shift to the right in the demand curve would represent an increase in demand, not a decrease in quantity demanded. Choice B is incorrect because a shift to the left in the supply curve would represent a decrease in supply, not a decrease in quantity demanded. Choice C is incorrect because a decline in price would lead to an increase in quantity demanded, not a decrease.

A "Decrease in the Quantity Demanded" Means That