An increase in the price of shampoo will generally result in a decrease in the:
A)demand of shampoo.
B)supply of shampoo.
C)quantity of shampoo demanded.
D)quantity of shampoo supplied.

Question

Quizplus · Accepted Answer

An increase in the price of shampoo will lead to consumers reducing their quantity demanded because shampoo becomes relatively more expensive compared to other goods. However, the supply of shampoo is not affected by changes in price, so B and D are incorrect. The increase in price does not affect the overall demand for shampoo, just the quantity demanded at that particular price level, so A is also incorrect.

An Increase in the Price of Shampoo Will Generally Result