When the price level in an economy decreases, the quantity of output demanded in the economy:
A)falls.
B)increases.
C)stays constant.
D)does not change unless the quantity of output supplied changes as well.

Question

Quizplus · Accepted Answer

When the price level in an economy decreases, the purchasing power of consumers increases, leading to an increase in their demand for goods and services. As a result, the quantity of output demanded in the economy also increases. This is known as the wealth effect.

When the Price Level in an Economy Decreases, the Quantity