Why does quantity demanded decrease when price increases?
A)People choose to reduce consumption of the item.
B)People "drop out" of the market for the item.
C)People find substitutes for the item.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

When the price of an item increases, people may reduce consumption, drop out of the market, or find substitutes, leading to a decrease in quantity demanded.

Why Does Quantity Demanded Decrease When Price Increases