Holding everything else constant, a decrease in the price of bicycles will result in
A)a decrease in the quantity of bicycles demanded.
B)an increase in the demand for bicycles.
C)a decrease in the supply of bicycles.
D)an increase in the quantity of bicycles demanded.

Question

Quizplus · Accepted Answer

According to the law of demand, a decrease in price will lead to an increase in quantity demanded, holding everything else constant. Therefore, the correct answer is D. Option A is incorrect because a decrease in price would increase the demand for bicycles. Option B is incorrect because the decrease in price would not change the demand, but rather the quantity demanded. Option C is incorrect because a decrease in price would not reduce the supply of bicycles.

Holding Everything Else Constant, a Decrease in the Price of Bicycles