An increase in the quantity demanded of tea occurs whenever:
A)the population of tea drinkers grows.
B)the price of coffee rises.
C)tea drinkers receive an increase in their incomes.
D)the price of the tea falls.

Question

Quizplus · Accepted Answer

According to the law of demand, as the price of a good or service falls, the quantity demanded of that good or service will increase, assuming all other factors remain constant. Therefore, when the price of tea falls, the quantity demanded of tea will increase.

An Increase in the Quantity Demanded of Tea Occurs Whenever