An increase in price will lead to a lower quantity demanded because:
A)suppliers will supply only the smaller amount.
B)quality deteriorates.
C)people will purchase less of the good.
D)all of the above.
E)none of the above.

Question

Quizplus · Accepted Answer

When the price of a good increases, people will be less likely to purchase it because they will either find it too expensive or can only afford to buy less of it. This ultimately leads to a decrease in the quantity demanded. The other options mentioned (A and B) are not necessarily direct causes for a decrease in quantity demanded when prices increase.

An Increase in Price Will Lead to a Lower Quantity